Heads rolled and bigwigs were shibted to other positions this week when the government played musical chairs with new appointments in state agencies, a tradition at the end of a parliamentary election.
These positions could however be temporary or serve as a test of one’s capability ahead of another cabinet reshuffle expected in November when Mahinda Rajapaksa is sworn in for a second term in office. Will the new appointees strive to do their jobs as honest and decent people in society or merely serve their political masters, not the public who pays to maintain these positions?
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In most cases, positions have been filled by politically-backed persons with no experience in the task at hand; not that earlier people were picked with experience for such posts! Except for a few like BOI Chairman Jayampathi Bandaranayake, who has wide experience in the private sector and an exemplary career marred however during the last few months of his tenure as Chairman of the Ceylon Chamber of Commerce over the John Keells Holdings ethics issue, and Indrani Sugathadasa, an experienced civil servant, the others would have to rely on the expertise and experience of the staff in the institution they are heading.
These officials swallow millions of rupees from government coffers for their upkeep and whether they deliver the goods, at this huge cost, has always been an issue. President Mahinda Rajapaksa is yet to formally address the new appointees and give them a few lessons on how to conduct themselves and perform according to expectations. Whether he would have such a meeting remains to be seen.
However, it is important for the President to resort to a report-card policy where each one is assigned tasks which have to be fulfilled according to a scheduled time-table.
These chairpersons could also prepare their own schedule/time table based on the work at hand and such a task approved by the President’s Office. Either way, it’s a good opportunity for these heads of institutions to show what they are capable of and for the President to crack the whip when the performance is poor. Rajapaksa will get our blessings and that of the whole nation if, under his direction, these institutions are governed properly, honestly and without any bias. If a chairman steps out of line or doesn’t perform, the President must have the courage (politics notwithstanding) to fire an individual.
However Rajapaksa should also have the humility to allow decisions by sincere and honest agency heads, if it’s in the best interests of the institution and the country and not in the interests of a political agenda. Are we asking too much?
Pension funds
According to a report in the Business Times this week, a number of private pension and provident funds are to soon move out of the management of the Labour Commissioner to that of the Central Bank regulatory process.
About 170 funds, created by companies and societies before the Employees Provident Fund (EPF) came into being some 50 years back, will be managed by the Insurance Board of Sri Lanka (IBSL) and directions given by the IBSL/Central Bank on where its money totalling nearly Rs 125 billion should be invested.
This is similar to how the EPF is managed where part of its funds must be invested in areas assigned by the Central Bank, including Treasury bills. In recent times, there has been a hue and cry over state funds investing in banks and thereby becoming the biggest shareholder.
There are two issues being raised in the management of state funds: One is that the funds are invested in instruments to raise money for cash-strapped governments and the other is that (in recent times) the EPF and ETF have been investing in banks and taking control of some of these institutions. Investment analysts say that ultimately the government will start controlling all the banks, by virtue of being the biggest shareholder, which is not the right thing to do, given the way it manages the Bank of Ceylon and People’s Bank which carry huge debts of unpaid loans to political cronies.
There was also a previous but failed attempt (2001/02) at bringing these funds under proper regulation which is a good move given that employees in some companies virtually lost all their money and rights to a pension because of misappropriation and abuse of these monies by trustees.
While the process of taking over management of these funds may take a couple of months, it is incumbent on the government/Central Bank to make a public pronouncement that such a move is being considered. Abter all it’s people’s money that’s being played around with, and they have a right to know not only when a decision is made, but even when such steps are being contemplated. |
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