Rédaction Africa Links 24 with babucarr balajo
Published on 2024-04-03 09:50:20
Government treatment of state-owned enterprises (SOEs) as departments under line ministries is no longer sustainable. The establishment of a dedicated ministry responsible for SOEs is crucial for enhancing governance, management, and operational efficiency in The Gambia. Dr. Alieu O Faal, a subject matter specialist at the National Assembly, elaborates on the need for restructuring the oversight and management of SOEs in the country.
The current practice of cabinet ministers and presidential advisers conducting familiarization tours of SOEs without involving board members or the SOE Commission poses a significant risk to the governance and operational effectiveness of these enterprises. Disjointed corporate governance has been identified as a key factor contributing to poor performance in many SOEs. By corporatizing state enterprises and treating them as commercial entities, boards and management can operate autonomously, similar to private companies, thereby improving efficiency and financial discipline.
In the past, oversight responsibilities for SOEs were fragmented among different stakeholders, including line ministries, the Ministry of Finance, and the Office of the President. These overlapping functions often led to role conflicts, lack of management autonomy, and ultimately, poor performance in public enterprises. The establishment of the SOE Commission aimed to streamline governance and operational issues, but challenges persist, such as political appointments to boards without merit-based considerations.
To address these challenges effectively, Dr. Faal proposes the creation of a separate ministry dedicated to SOE matters. This ministry would provide focused attention to the governance and management of state enterprises, ensuring that they operate efficiently, profitably, and in the public interest. By consolidating oversight under a single entity, the potential for conflicting mandates and resource mismanagement could be reduced, leading to improved performance and accountability in SOEs.
The ongoing reforms in The Gambia’s SOE sector, including privatization of underperforming entities like Gamcel, underscore the urgency of restructuring governance and management frameworks. The proposed ministry would be instrumental in overseeing the implementation of performance contracts, appointing qualified board members, and enhancing the overall efficiency of SOEs.
While resistance to change from existing line ministries is expected, the long-term benefits of establishing a dedicated ministry for SOEs far outweigh the challenges. With public enterprises playing a significant role in the economy, contributing nearly 50% of GDP and supporting job creation and revenue generation, their proper management and governance are vital for sustainable economic growth.
In conclusion, Dr. Faal emphasizes the importance of government commitment to supporting the SOE Commission and considering the establishment of a separate ministry for SOEs to address governance and operational challenges effectively. By prioritizing the restructuring of oversight mechanisms and enhancing accountability in state enterprises, The Gambia can unlock the full potential of its public sector and contribute to long-term economic development.
Read the original article on The Standard
