THE VITAL INGREDIENT FOR BUSINESS SUCCESS is prudent management. In any business endeavour quality leadership plays a major role in the prosperity of the enterprise. It must not be hamstrung or lacking in autonomy and its major objective must be efficiency. With very few exceptions the foregoing cannot be said about the majority of statutory corporations in this country.
A look at the 2009 Auditor General’s report highlights a plethora of inefficiencies, many of which are repeats from previous years and with no mention of corrective measures put in place to avoid recurrence. Why is this so?
Part of the reasons for creating statutory corporations was to bring some measure of control over Government expenditure and to improve methods used in dispensing social benefits to communities. In pursuit of these objectives Government put out new processes for arresting the overruns so prevalent, and also as a means of capping transfers to various agencies which appeared insensitive to the resulting drain on the treasury.
Institutions such as the Barbados Water Authority, the Transport Board, the Queen Elizabeth Hospital, Ministry of Health and its polyclinics as well as the Ministry of Education, all make legitimate claims for financial support. It is for this very reason that the efficiency of the statutory corporations is of paramount importance.
Unfortunately and misguidedly so, a culture of ‘non-budget consciousness and importance’ has permeated the quasi-governmental organisations tantamount to the view that ‘funds will be provided – not to worry’.
For other reasons including the shadows of politicians darkening the corridors, the belief by some staff that performance and efficiency are unnecessary headaches have led to a culture which sees little need for meeting deadlines, even to the extent that financial statements mandated by statute for presentation to Parliament by deadline dates are late or not submitted.
Why does this state of affairs, as known to all and sundry, exists? Why is there no obvious evidence of improvement? The fact that the boards appointed to run the affairs of the corporations are toothless, lack autonomy, are subject to overview and direction by ministerial edict do not motivate staff to worry about job retention and hence the need for greater efficiency.
Given the financial burden placed on Government revenues and in turn on taxpayers, the time has come when a serious review of the ongoing maladies needs to be undertaken and the necessary decisions taken to ensure refinement.
No one wishes increased unemployment, but if to improve management of these entities requires closure of the facility then we must pursue this course of action. There can no longer be any doubt that it is time to amend the relevant legislation to give the boards a free hand to erase forever the doctrines of undermanagement, under-efficiency and the pork barrel syndrome.
