Secretary to the Government of the Federation, Boss Mustapha, has called on newly inducted chairmen of governing boards and chief executive officers of parastatals, agencies, and commissions to understand their roles in the corporate governance of their respective organisations.
Mustapha gave the charge at the induction programme for members of Governing Boards of Federal Parastatals and Commissions of the National Citizens Centre, Projects Development Institute, Transmission Company of Nigeria, and Nigeria Christian Pilgrim Commission which held on Monday in Abuja.
In his keynote address, the SGF said there had been divergent interpretations of the roles governing boards of Federal Parastatals are expected to play in the corporate governance of their organisations.
He listed the issues to include “disagreements on who is responsible for the day-to-day running of parastatals and agencies, disregard for extant regulations guidingrestricting the conduct of board meetings, interference in the function of the office of the chief executive officer, issuing directives to staff without recourse to the chief executive officer thereby creating disharmony amongst personnel,” among others.
The SGF noted that the observed poor and unhealthy relationships existing between Governing Boards and their Chief Executive Officers have become very worrisome to the government, noting that the frosty relationship was avoidable “if chairmen and members of governing boards acquaint themselves with the instrument of the establishment of their respective organisations, where the roles and responsibilities of the board are prescribed.”
According to him, the public service rules, financial regulations, Public Procurement Act, 2007, and Fiscal Responsibility Act, 2007 are all tailored to guide the conduct of public officers.
He reminded boards and councils of agencies and commissions that they are not to be involved directly in the day-to-day management of a parastatal or agency.