JSCs do good work but lack legal authority

THE EDITOR: The Joint Select Committees (JSCs) of Parliament and the Public Accounts (Enterprises) Committee (PAEC) are two of the most important bodies for citizens to understand how state companies are managed.

They are the vehicles through which state boards and managers give public account of their stewardship of taxpayers’ monies.

Recently, we were informed of callous spending by Caribbean Airlines (CAL) and the Youth Training and Employment Partnership Programme (YTEPP).

The relatively new CEO of CAL hired around 11 of his former compatriots from Digicel. These employees are generously compensated. It is common practice, in the corporate world, for an incoming CEO to hire his team.

However, when asked if CAL would be making a profit anytime soon, the CEO obfuscated by saying that revenues were up for 2018 but did not answer the question. CAL has never turned a profit in its 11-year history.

The CEO of YTEPP was caught out being a stranger to the truth. He was asked if any close relative of his was hired to work in YTEPP. He told the committee “no.” Two hours later, when the question was phrased in another way, he said “yes.”

It was revealed that YTEPP provides generous compensation and benefits for its CEO and executives. Its management practices contravene many of the guidelines for state corporations.

The problem with the JSCs and the PAEC is that they have no legal authority to take action against corporate malfeasance in state enterprises.

After horrendous corporate practices are highlighted, the executives and boards go back to doing the same things. Their line ministers seem reluctant to take any action.

Corporate governance is in short supply in many state-run companies.

We must do better.

LINUS F DIDIER, Mt Hope

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"JSCs do good work but lack legal authority"

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