PE board asks ministries to send details of appointments
KATHMANDU, MAR 14 -
The Public Enterprises Directorate Board on Tuesday again asked government ministries to send the details of the appointment process and the status of the chief executives in the public enterprises (PEs) under them.
As most of the ministries ignored the board’s first letter sent two weeks ago, it has written to them again.
The board wants to proceed with new appointments of chief executives in PEs where the post has remained vacant and where the chief executive has been hired without free competition.
According to an official related to the board, only the Ministry of Energy and the Ministry of Forest have sent details about the PEs under them. “The Energy Ministry has informed the board about the vacancy of the post of managing director at the Nepal Electricity Authority,” said the official.
The NEA has been without a managing director since the last one Dipendra Nath Sharma resigned in November 2011 after serving for just three months.
“Likewise, the Ministry of Forest has sent details about the vacancy of the post of chief executive at Nepal Timber Corporation,” said the source.
The government’s move is aimed at addressing the tendency to make political appointments at PEs every time there is a change in the administration which has prevented them from getting much-needed stability. With political appointments being identified as one of main reasons behind the bad performance of PEs, the government introduced the concept of a PE board which will oversee all the PEs.
The board is also responsible for making the arrangements for appointment of the chief executive through free competition as per the PE Directorate Board’s order.
After the Cabinet okayed the working procedures regarding recruitment of the board of directors and chief executives, the board decided to start the process of fresh appointments in a number of PEs where such posts have lain vacant or political appointments have been made.
“We will start the process of appointing new executives in a week after our office space is finalised,” board chairman Bimal Wagle said.
The government, however, has adopted a policy of “not touching” the chief executives appointed through free competition, like at Rastriya Banijya Bank. Currently, the post of chief executive is vacant at Nepal Oil Corporation, Janakpur Cigarette Factory and Nepal Hydroelectric Investment and Development Company, according to the Finance Ministry.
On the other hand, there are several PEs having one chief too many. For example, National Trading and Nepal Transit and Warehouse Company have two chiefs. The Supreme Court has reinstated the old chiefs in the Citizens Investment Trust, Nepal Food Corporation and Dairy Corporation while the status of the newly appointed chiefs is unclear.
Political parties are found to have appointed chiefs in PEs to give jobs to their cadres. In this connection, the PEs Directorate Board has been assigned to oversee all the state-owned enterprises and will get involved in formulating policies, restructuring and monitoring and evaluation, among other tasks.
The main responsibilities of the board include making suggestions to the government on policies, programmes, investments, restructuring, divestment and liquidation; devising criteria for the appointment of chief executives; and monitoring their performance.
Source: Kantipur
