The move is also expected to consolidate Tinubu's grip on power and to enable him appoint his loyalists who believe in his renewed hope manifesto for efficient execution and delivery of his campaign promises in line with party's policies.
Nonetheless a good number of Nigerians knows little about Parastatals, powers and functions in the affairs of Government, below is a brief explanation of the aforementioned according to the former Secretary to the Government of the Federation Boss Mustapha during the induction of heads and members of the Federal Parastatals in a workshop in the prestigious Nicon Hilton Hotel in 2028.
What are Parastatals?
Parastatals are Government establishments created by statutes to
deliver specific mandates. The structure and operating instruments are
derived from their respective Acts of establishment. Depending on
exigencies, parastatals are placed under the supervision of the Presidency or
a Ministry. The affairs of Parastatals are superintended by a Governing
Board, headed by a Chairman, to provide policy guidelines and liaise with the
supervisory Ministry through the Permanent Secretary for effective
monitoring, policy guidance, Budget processing and ensuring that
Government policy directives relating to the functions of the Parastatal are
carried out effectively. However, the day-to-day administration of the
Parastatal is handled by a Chief Executive who doubles as the Accounting
Officer.
Former Secretary to the Government of the Federation Boss Mustapha in a seminar held for heads and members of the Federal Parastatals hinted that “it has observed with concern that divergent interpretations of the roles Governing Boards of Federal Parastatals
are expected to play in the corporate governance of their organizations."
Arising from this, a number of worrisome issues have begun to emerge.
Some of these include:
a. Disagreements on who is responsible for the day to day running of
Parastatals and Agencies;
b. Disregard for extant regulations guiding/restricting the conduct of
Board meetings;
c. Interference in the function of Office of the Chief Executive Officers;
Issuing directives to staff without recourse to the Chief Executive Officer thereby creating disharmony amongst personnel;
e. Initiating unlawful disciplinary measures against the Chief Executive
without requisite guidance and approval from supervisory Ministry; and
f. Instigating the Labour Unions and Associations as agents of
distraction in the Parastatals.
6. The observed poor and unhealthy relationships existing between
Governing Boards and their Chief Executive Officers the following referral
authorities and other relevant Government circulars are charged by status to guide the conduct of federal Parastatals and their respective boards for the smooth conduct of Government business.
i. Public Service Rules;
ii. Financial Regulations;
iii. Guide to Administrative Procedures in the Public Service;
iv. Public Procurement Act 2007; and
v. Fiscal Responsibility Act 2007 etc.
The Roles and responsibilities of the Board of Parastatals.
The roles and responsibilities of Boards of Parastatals as provided by some of
the earlier mentioned referral authorities:
• Statutory Boards/Councils shall set operational and administrative
policies in accordance with government policy directives and shall
supervise the implementation of such policies;
• A Board shall not be involved directly in the day-to-day management of Parastatals.
A Minister exercises control of parastatals at policy level through the
Board of the parastatal only;
• The Board must only operate on a part-time basis in accordance with
extant rules that forbid allocation of official quarters to members on a
permanent basis, use of official vehicles by members on a permanent
basis and payment of estacode allowances for only overseas’ travels
approved by the Office of the Secretary to the Government of the
Federation and their supervising Ministry; and
• On the other hand, the core functions of the Chief Executive Officer include:
The day-to-day administration of the organization, as well as
providing strategic leadership for the management of the organization.
The Board shall, in addition perform the following oversight
responsibilities:
• ensure that the Federal Government of Nigeria’s long-term interest is
served;
• work with the management to determine the organization’s mission and
long-term strategy;
• promote sustainable and cost-efficient activities of the organization;
• establish and promote the objectives, business and integrity of the
organisation;
• establish internal control over financial reporting, and assess the
organisation’s risks and strategies for risk mitigation;
• monitor the performance of management in achieving set objectives of the organization; and
• Request appropriate reports from Management.
9. In conclusion, Governing Boards and Chief Executive Officers of
Federal Parastatals and others who run them must remain worthy of the trust
reposed in them by their respective appointments. First, there must be a
sustained and committed leadership that embodies the core values of good governance.
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