Par panel questions competence of PSU govt directors
Government directors on the boards of central public sector undertakings have come under a severe attack from a Parliamentary Committee, which has questioned their competence for the job.
By PTI |
NEW DELHI: Government directors on the boards of central public sector undertakings have come under a severe attack from a Parliamentary Committee, which has questioned their competence for the job.
"The government directors do not have professional or academic expertise required to independently discharge onerous responsibilities required by the assignment," the Standing Committee on Industry said in its report.
"The committee finds this contradictory to the practice of professionalisation of boards," the report said, adding relevant expertise should be made mandatory for government directors who should not represent the ministries passively in CPSE's boards but espouse their interests.
The committee suggested the ministry should be represented on the boards of CPSEs by financial advisors and presence of other representative was not required as obligations of ministry and the companies and targets have been clearly defined in the MoU they sign every year.
"Any interference in routine functioning of CPSEs should amount to undermining of MoU," it added.
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According to current guidelines, a maximum of two government officials can be appointed on the boards of CPSEs by administrative ministries, that too when interest of more than one departments is involved.The committee has, however, observed these guidelines have been violated in most cases.
"In almost all cases, both the government directors belonged to the same ministry or department and in several cases representatives of other government agencies were included as government directors over and above this limit," the report said.
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