Treasury Registrar expedites governance reforms in parastatals

Dar es Salaam. The government has accelerated reforms in parastatals, focusing on governance this time. Staying true to the commitment to enhance the boards of state-owned enterprises, the government aims to introduce competition through a rigorous selection process for board membership positions.

Last week, the Office of the Treasury Registrar (OTR) invited applications for those interested in board membership positions, marking a crucial step in the ongoing, comprehensive reforms of the corporate governance of public corporations. The Treasury Registrar, Mr Nehemiah Mchechu, emphasized the importance of ensuring that appointed board members are qualified and announced the development of an up-to-date, detailed database of ideal board members.

“OTR is seeking capable and qualified candidates for board positions in public corporations working on oil and gas, mining and mineral exploration, energy and utilities, financial institutions, and tourism and hospitality.” Mr Mchechu said through a public notice published in various newspapers.

He added that the database will streamline the implementation of the responsibilities of various electoral authorities while laying the foundations of good governance in the implementation of those responsibilities. The database will eliminate the feeling of bias in the selection of board members in public organizations.

He said that the board positions involve corporations where the government owns both majority and minority shares. According to him, “his office will conduct a transparent and fair selection process.”

OTR is also responsible for private investments where the government owns shares in trust for the President. The OTR’s mission is to ensure the effective and sustainable contribution of public corporations to national development by focusing on operational excellence, commercial viability, and optimal service delivery.

He noted that to achieve that, the office is undergoing deep reforms that also involve board restructuring and realignment. The board is a top body that plays a crucial role in guiding the strategic direction and governance of these institutions. Therefore, recruiting the right mix of board members is vital for any result-oriented organization.

The statement added that the current members will continue to serve in their positions according to relevant laws and procedures and once the database is completed, its use will begin for vacant positions.

Expert reactions

Analysts who spoke to The Citizen called upon the government to do the same for top officials managing state-owned companies. The Institute of Management and Entrepreneurship Development chief executive officer, Dr Donath Olomi, said it was a good initiative, especially as the majority of the state firms are business entities that need professional and experienced board members.

“I understand that the regulations have not changed. What seems to have changed is the process of selecting the board members with the right skills who have to apply and do the interviews, and that the candidates with the right qualifications will undergo a vetting process before appointment,” he said.

According to him, this will eliminate the prevailing practice of individuals serving on multiple boards. It will also encourage a more concentrated emphasis on merit.

On his part, the Dar es Salaam University College of Education (DUCE) don who also doubles as an independent consultant, Prof Abel Kinyondo, called the move “very positive.” He noted that previously board positions were politicized, with ministers appointing members without looking for merit.

“The board is an important body that needs to provide strategic leadership and to do that, it needs the best brains that can push the country forward,” he said.

He added that to succeed, the government needs to conduct thorough scrutiny to ensure the candidates are the best in their fields. He noted that the remaining best ones can be put on a database for a succession plan.

“This should not end with the board; we need CEOs and other heads to also be selected on merit,” he stressed.