The appointment of permanent secretaries and chief executive officers to board roles should be discontinued, according to independent opposition member Premila Kumar. She raised this issue during a parliamentary session on Tuesday, highlighting concerns over the performance of these individuals in managing their respective ministries or companies.
Kumar’s remarks followed the presentation of the Standing Committee on Public Accounts’ report regarding public enterprises and state-owned enterprises (SOEs) in Parliament. She expressed alarm over the inability of SOEs to submit their annual reports in a timely manner.
“When SOEs consistently fail to provide annual reports or function commercially, it indicates a more significant issue – the process of appointing board members,” Kumar stated. She questioned whether suitable candidates are being appointed to oversee these entities, noting their reliance on private accounting firms for financial statements and strategic plans.
She emphasized the necessity for merit-based appointments, advocating for the selection of individuals with robust financial or commercial experience. Kumar posed a critical question: “Why are we compensating the CEOs and financial officers if they fail to perform this fundamental job?”
Additionally, she highlighted that if board members are not meeting their responsibilities, the government must be ready to make replacements.