By Kebba AF Touray
The Public Enterprise Committee (PEC) of the National Assembly has tasked the State Owned Enterprise (SOE) Commission to adequately evaluate SOEs and advise the government on their viability and a way forward.
PEC entrusted this task to the SOE Commission in a report laid before lawmakers on Thursday, 12 September 2024, for consideration and adoption, after coming from a Study Tour to the Parliament of Botswana. The visit was aimed at giving thorough understanding on the role of Parliamentary committees especially PEC in SOE oversight, as well as a thorough understanding of the institutional arrangements within an SOE oversight institution, including the roles and responsibilities of the various stakeholders.
The Chairperson of the Committee, Hon. Lamin J. Sanneh while laying the report, told his colleagues that the Committee recommends the SOE Commission to adequately evaluate all fourteen SOEs and advise the Government on their viability and a way forward.
He told his colleagues that during their visit, they met with some of the Botswana authorities like the Auditor General, Public Enterprises Evaluation and Privatization Agency (PEEPA); Botswana Accountancy Oversight Authority (BAOA); Deputy Speaker and Statutory Bodies and State Enterprises Committee members of the Botswana Parliament, among others.
He said the visit was an opportunity for them to learn best practices in transparency and accountability in the delivery of services by SOEs, and gave them a better understanding of the legal and regulatory framework for SOE governance and oversight. He told Members that the Government of the Gambia through the Fiscal Management Development Project, embarked on reforming State-Owned Enterprises with active involvement and participation of the National Assembly, particularly the Public Enterprises Committee.
“The reforms are geared towards improving SOE service delivery and fiscal efficiency and require effective and efficient parliamentary scrutiny and oversight to ensure operational efficiency and prudent financial management,” he said; adding that there are fourteen Commercial SOEs in The Gambia delivering public services in various sectors such as energy, telecommunications, agriculture, transportation and other services.
He said SOEs are further characterized by inefficient operational and financial management and said in the Gambian context, the management of SOEs has been a challenge but said reforms are currently being implemented to attain improved service delivery and fiscal efficiency.
“The SOE landscape has become increasingly diverse. Whereas there used to be some relatively well-defined criteria, there is no longer a uniform definition with the growing complexity of state participation in the economy, especially because the definition of an SOE has always been country-specific,” he said.
He stated the reforms being implemented could have major positive impacts not only by reducing fiscal risks, curtailing direct transfers, and reducing overstaffing but it will also be strengthening competition. The reform agenda, he said, seeks to strengthen the internal capacity of SOEs.
In this regard, he told Members that the Government of the Gambia has decided to establish an SOE Commission to oversee the service delivery, fiscal efficiency, and governance of SOEs in the country.
“The fact that the SOE Commission will be established, it is important to learn best practices from countries where this type of Commission operates. The Committee was also interested in establishing a relationship between the SOE Commission and the Committee, to effectively perform its oversight function,” Hon. Sanneh conveyed.
He said it is against this backdrop that PEC embarked on a study tour to Botswana, a country with a proven track record of SOE Oversight, to have the opportunity to enhance the capacity and knowledge of the Committee in the area of SOE governance in the country.
The visit, he said, has enhanced the capacity of the Committee to understand the relationship between Parliament, the SoE Commission, and all relevant stakeholders in improving the corporate governance and the financial oversight of SOEs.
Other recommendations made by PEC after its study visit to Botswana include the following:
a) the AG’s Office to audit the accounts of the fourteen SOEs rather than outsourcing these services from External Auditors; and b) the Audited Financial Statements of all thirteen SOEs to be submitted to the National Assembly latest 31st March of the preceding year as prescribed in the Constitution.
After a brief debate, Members adopted the report of the Public Enterprise Committee.
