By FAITH RONOH and MWANIKI MUNUHE
The implementation of parastatal reforms has kicked off with a serious embargo on several issues.
A circular sent to all state corporations and key government officials yesterday required all state corporations to begin the implementation process with immediate effect.
Top in the reform list is a ban on state corporations from recruiting new staff or filling vacancies in the boards.
The circular read in part: “The meeting held on Monday, December 16th resolved that a circular be sent to all State Corporations identified for the parastatal reforms to, in the interim period, put on hold restructuring, recruitment of staff (including the CEO), filling vacancies in the Boards and review of terms and conditions of service for staff.”
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The circular further outlined that state corporations will not be allowed to fill any vacancies without consultations with Chief of Staff and Head of Public Service.
“State corporations are also expected not to fill any vacancies, transfer staff across state corporations, dispose, transfer, lease or acquire any assets and where there is any on-going process in this respect, necessary consultations should be made immediately with the Chief of Staff and Head of Public Service on the way forward,” the circular read.
A report, released by the Abdikadir Mohammed-led taskforce is proposing far-reaching measures in the structure and organisation of parastatals to curb wastage of public funds and overlapping of duties.
According to the report, the corporations are tagged as Government Owned Entities that places them under two themes – commercial and non-commercial, which the report refers to also as state corporations and state agencies respectively.
The major shareholder in the state corporations would be an entity known as Government Investment Corporation that will be under the Office of the President, who would appoint the chief executive. Non-commercial entities such as research institutions, schools, colleges will be supervised by parent ministries.
