By Landing Ceesay
The President of the Republic of the Gambia, His Excellency Adama Barrow, said all public institutions have to deliver on their mandates.
“We have reached a critical stage in the development process of this country wherein all public institutions have to deliver on their mandates in the most efficient, effective, and transparent manner. That is the only way we can realise our collective goals as a nation.
“Moving forward, the Government will continue to work with all Public Enterprises and ensure that they do not only deliver public services in a reliable and efficient manner but also contribute to Government fiscal operations by disbursing dividends payable to their shareholders,” he said.
President Barrow made these remarks at the Performance contract signing ceremony between the Ministry of Finance and Economic Affairs and the State-Owned Enterprises (SOEs).
The State-Owned Enterprises (SOEs) that signed the performance contract were the Gambia Ports Authority (GPA), Social Security and Housing Finance Cooperation (SSHFC), and the Gambia National Petroleum Corporation (GNPC).
The program is part of the new governance instrument and protocols designed to usher in improved State-Owned Enterprises (SOEs) Performance on better service delivery and contribute more meaningfully towards national socio-economic development.
The Performance contract covers the areas of the State-Owned Enterprises’ (SOEs) service level, their financial obligation, their operational efficiency, and their human capital. It also covers the scoring matrix of the State-Owned Enterprises (SOEs) to measure their performance.
President Barrow said the signing of Performance Management Contracts is another relevant and critically significant Government initiative, adding that the contracts are designed to challenge SOEs and spell out the roles they are expected to play to achieve the objectives and targets set for them.
“Also, they are to ascertain that SOE performance and results are closely and rightly monitored and measured. In addition, the contracts are to guarantee the establishment of a strategic framework for accountability and effective communication between the Enterprises and their stakeholders,” Barrow said.
The president further stated that public expectations are high in the country and posited that with relevant competence, authority, and integrity, SOE Boards should execute their functions of strategic guidance, monitoring, and management oversight by acting in the best interest of their Public Enterprises and shareholders.
President Barrow said Board decisions should be consistent with the mandate of the SOEs and in accordance with best practices and encouraged the SOEs to review and update their Board Charters.
“Like Management, you will be held accountable for failure to attain the targets indicated in the Performance Contracts. The occasion accords me the opportunity to challenge and encourage Public Enterprises to initiate change and put an end to undue contentment and under-achievement or low performance in service delivery.
“I ask all public servants, ranging from Ministers to Board Members and Management, to view and appreciate these contracts from a positive perspective. Those entrusted with responsibility must deliver for their own moral satisfaction but, more so, for the public good. In this way, the country would create and boast of high-performing Public Enterprises that serve the public diligently,” he said.
President Barrow said what they need to do now is to institutionalize the Performance Contract through effective implementation and monitoring mechanisms.
The Gambian Leader said in the near future, all Public Enterprises will be required to sign Performance Contracts that would push them to reach set output targets in terms of both operational and financial performance.
He said the SOEs that signed the performance contract are extremely important, and their operations have a telling impact on the lives of the Gambian citizens and the economic performance of the Government.
The Gambian Head of State said it is no secret that State-Owned Enterprises play a vital role in national development endeavours, and it is expected that, in providing essential social services for the public, they do so in a financially and operationally robust manner to ease the pressure on Central Government resources and contribute positively to economic growth.
“Our experience is that, despite the enormous investments made by the Government in SOEs, many of these entities continue to post losses.
This has made it necessary to devise a renewed strategy to change the narrative and strengthen their operations and performance,” Barrow told the gathering.
President Barrow said his government is committed to solving the trouble of “ineffective” SOE oversight, which has contributed to the current low-performance levels of some public enterprises and have taken important steps to remedy the legacy issues constraining Public Enterprise operations.
“Key among them was to conduct a Special Purpose Audit on all thirteen SOEs in the country. Apart from the audit, it was thought appropriate to introduce an SOE Bill, which will be tabled before the National Assembly soon. Once passed, the SOE Bill will lead to the establishment of a Commission with oversight functions on all SOEs,” the Gambian leader said.
The signing ceremony took place at the State House in Banjul on Tuesday and the event was graced by cabinet Ministers, Directors, and Board Chairpersons of the various State-Owned Enterprises (SOEs) across the country.