BPE Moves to Flush Out Corrupt Board Members of Privatised Firms

The Bureau of Public Enterprises (BPE) will no longer tolerate alleged instances of unwholesome representation by any of its nominated officials on the boards of the various privatised federal government firms, and has in this regard initiated new measures to check such practices, THISDAY has learnt.

The paper learnt from reliable presidential sources yesterday in Abuja that the privatisation agency has instituted a code of ethics for directors and alternate directors representing it on behalf of the government on the boards of privatised enterprises such as the 11 electricity distribution companies (Discos).

The sources told THISDAY that the code of ethics, a brainchild of its Director General, Mr. Alex Okoh, would apply to all the directors and any such person that may be nominated to act as alternate director sitting on the board of privatised enterprises in which the government has equity or interest.

The code, the sources stated, has been approved for implementation by the Bureau and would soon kick in.

The new measure, it was further gathered would be part of the BPE’s efforts to rev up its post-privatisation monitoring duties, within which it is expected to evaluate the efforts of investors in meeting up with the performance agreements signed for the respective privatised entities.

It was also revealed by the sources that, the new code of conduct would ensure good practices and stipulate acceptable conduct for the representatives of the bureau assigned to, and charged with the responsibility of sitting on, and functioning on boards of enterprises that the government has equity interests.

One of the sources stated that: “It will focus primarily on regulating the behaviour of representatives of the bureau on such boards of government companies, and also seek to document their actions, both expected and prohibited, by the representatives in the pursuit of their mandate on the boards.”

The sources also explained that the code will provides a veritable platform for effective communication with representatives of the Bureau by stipulating a framework to adhere to when confronted with corporate, ethical, moral and financial decisions while functioning on the boards of the enterprises. This way, they noted that instances of unethical compromises would be eliminated.

“The code of ethics is formulated to enhance the standards of corporate governance and corporate behaviour with the intention of curbing corporate corruption by keeping the behaviour of representatives’ on the boards of enterprises under control.

“This is in order to prevent wrongdoing that could have adverse effects on both the enterprise and the Bureau; and protect the interest of the government on the board and ensure compliance by the director or alternate directors with the terms and conditions warranted in the various divestiture documents,” added one of the sources.

Also, it was gathered that within the new code, Okoh would in exercise of his discretion to nominate representatives as alternative directors to boards of privatised enterprises, be guided by such principles as to understand that the role and mandate of the Bureau in nominating representatives to sit on the boards of enterprises is one of public trust, as well as the fact that they are to provide close supervision, monitoring and oversight of government’s interests in them for the common good of the public.

Similarly, an enforcement and compliance unit named the Anti-Corruption and Transparency Unit of the Bureau (ACTU) headed by a deputy director, would according to the sources, be inaugurated on Friday, June 16, 2017 by the Independent Corrupt Practices Commission (ICPC) to ensure the new codes of ethics are strictly enforced.