Federal agencies governing boards yet to understand their roles in the corporate governance- Secretary to the Government


The Secretary to the Government of the Federation, Boss Mustapha, on Monday said governing boards of federal agencies or parastatals have no power to remove Chief Executive Officers appointed by the President.

He said such boards may, however “articulate infractions, investigate wrongdoing and make recommendations to government through the supervisory ministry.”

Mustapha made the clarification at an induction programme for governing board members of federal parastatals, universities and medical centres organised by the Bureau of Public Service Reforms, in conjunction with the Department for International Development, a United Kingdom government department responsible for administering overseas aid.

The clarification comes at a time the dust raised by the recent decision of the Governing Board of the National Health Insurance Scheme to suspend Prof. Usman Yusuf as the Executive Secretary is yet to settle.

Mustapha said the Federal Government was concerned that most governing boards have not understood their roles in the corporate governance of the agencies they superintend.

So far, he said government has noticed some infractions on the side of such boards.

He listed the infractions to include what he called the board chairmen’s undue interference in the day-to-day activities of their parastatals and agencies; blatant disregard for extant regulations guiding the conduct of board meetings; interference in the function of the CEOs; issuing directives to members of staff without recourse to the CEOs; imposition of disciplinary measures against the CEOs in flagrant violation of the laid down rules; and using labour unions as agents of distractions in the agencies.