SOE bosses key to reform

APPOINTING heads of state-owned entities (SOEs) has to be done transparently, Minister Sasindran Muthuvel says.
In a statement yesterday, Muthuvel said the open recruitment process and competency-based appointments of SOE managing directors were key reform development partners emphasising to secure policy-based loan funding.
He added that all managing director roles that were expiring would be subject to this recruitment rigour from now.
Muthuvel said multiple appointments to key management roles in SOEs would be made in the coming weeks as a key element of the Government’s reform agenda.
Under the reform programme, Muthuvel said, SOEs would have an explicit commercial mandate to generate profits.
“This is necessary to remediate poor financial performance across the SOE portfolio,” he said.
“Currently, numerous entities, including Kumul Telikom Holdings and PNG Power, operate at a loss due to past and present sub-optimal management practice.
“Skilled and professional management is key to addressing this and ensuring profitability.
“Open and transparent recruitment processes facilitated by third party recruitment firms have recently been conducted for key positions such as head of Kumul Consolidated Holdings and PNG Power Ltd permanent appointments expected to be made in January.
“There will also be new appointments to board positions following the recent renewal of the Kumul Consolidated Holdings board. This is important to ensure robust oversight of SOEs as they implement the mandated reform programme. It is also needed to improve transparency and accountability within SOEs. Boards will need to endorse appointments of new managing directors to ensure a constructive working relationship with management and alignment in delivering company objectives.
“A lack of appropriate oversight and dysfunctional working relationships between boards and management has in the past too often manifested itself in poorly-planned and delivered capital projects. These have created major structural challenges that have undermined least cost service delivery in key sectors such as energy and telecommunications.”
Muthuvel was pleased to see recruitment processes being completed for these critical positions.
“As these selection processes are completed, I am delighted to be able to welcome new team members to join me in taking back PNG’s state-owned enterprises. I am very much looking forward to collaborating with my new management team during 2020 as we work to turn the nationally significant enterprises in the Kumul Consolidated portfolio around so we can deliver the services.”