Executive Mansion Usurps B.S.E Function

By J. Dominic Farley

The Acting Director of the Bureau of State Enterprises (BSE) has revealed that the Ministry of State for Presidential Affairs at the Executive Mansion , has virtually taken over the function of the Bureau.

Mr. Momodu Karneh told a Public Agenda interview that the attitude of the Ministry of State undermines the function of that autonomous agency of Government.

Momodu Karneh: “State owned enterprises are now making direct report to the Ministry of State with no reference to our agency, this is a stab in our back”. Under this condition, Karneh said it makes the fight against corruption almost impossible and called on the government to give the Bureau of State Enterprises the needed political and financial support to do its work.

Director Karneh pointed out that the current economy activities going on in the country must be monitored by his bureau and not the Mansion for the sake of transparency. This, he pointed out, will make it easier for auditors to do their work since “we will give accurate information on the performance of the SOEs”.

Karneh indicated that the lack of political will on the part of government's leaders to strengthen the entity is seriously hampering its operation. “The Executive Mansion is doing just everything that our mandate dictates,” Karneh lamented.

Karneh emphasized that when given the political will, the BSE will perform to the best to its ability.

In the 1980s, state owned enterprises had poor financial performance thereby sending discouraging signals to international lending institutions, including the World Bank and IMF, etc.

A concern of multilateral financial institutions, and the need for sustainable improvement for the viability and financial independence of these SOEs, the government through a World Bank project, commissioned a Massachusetts based consortium of consultants, the ‘Institute for Development Research' (IDR) to conduct study into the financial activities and issues affecting the performance of the state owned enterprises.

According to information, the report from the study and its recommendations suggested the establishment of the Bureau of State Enterprises (BSEs) as an autonomous Agency of government.

The Acting Director of the Bureau of State owned Enterprises [BSEs] has reported that the ministry of State for Presidential Affairs has nearly taken over the function of the Bureau; something the Director claims counterbalances the autonomous agency.

Momodu Karneh, in an interview told reporters, “This stabs the back of the fight against corruption and called on the government to give the bureau the needed political and financial support to do its work.

Director Karneh said, the current economy activities going on in the country have to be monitored by the Bureau and not the Mansion for the sake of transparency, this he pointed out will make it very easier for auditors “because we will give accurate information on the performance of the SOEs.” He said. “But the lack of political will to strengthen the entity is seriously hampering our operation”. “The Mansion is doing everything that our mandate dictates; and these are policies makers.” Director Karneh asserted.

Karneh emphasized that when they are given the political will, the bureau would perform to the best to its ability. It can be recalled in the earlier part of 1980s, it was discovered that the financial performance of the SOEs was very poor, thereby sending discouraging signals to the international lending institutions, including the World Bank, IMF and others.

Out of the concerns expressed by the Multilateral financial Institutions, and the need for sustainable improvement for the viability and financial independence, the government through a World Bank project, commissioned a Massachusetts USA-based consortium of consultants the ‘Institute for Development Research' (IDR) to conduct study into the financial activities and issues affecting the performance of the SOEs.

The report from the study and its recommendation suggested the establishment of the Bureau of State Enterprises (BSEs) as an autonomous Agency of government to advise on policies and formation of policy alternatives for the SOEs sectors, collect data for preparation of annual, periodic and special reports, monitor and evaluate performance and detect possible problems, representation on the board of States enterprises in an observer capacity.

Decree #8 of the Interim National Assembly [INA] in 1985 crated the Bureau of State Enterprises. The agency, according to the Decree, is authorized to advise on policies and formulation of policy alternatives for the SOEs sectors, collect data for preparation of annual, periodic and special reports, monitor and evaluate performance and detect possible problems of the enterprises. The Act also calls for the BSE to serve on the board of state enterprises in an observatory capacity. Efforts to contact officials at the Ministry of State failed up to press time.