Company abuse at Indeni is common in parastatals – Charles Milupi

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PRESIDENT MILUPI

ADD president Charles Milupi says many boards in parastatals
are created to award ruling party cadres.

Reacting to a whistleblower’s report that the Indeni board had
met several times already this year and getting sitting
allowances of between K7,000 and K21,000, Milupi observed most
parastatals were not run in a correct manner.

“Every board meeting should have an agenda that looks at all
that is required to do. And once the board has sat, it must
give management the urge in which to run the company and
interpret informed decisions. Quite clearly in this case,
either the board is created mainly to reward people, which is
what is happening in many parastatals, to reward cadres and
therefore put people in who are totally incapable of giving
policy directions to the company and that is why many
parastatals are not run in the manner that these companies
should be run. Instead of creating profits, they are making
losses. This should is what is wrong with the governance of
this country,” said Milupi.

He wondered what they could be discussing which was so
pressing.

“The report that we have received that the Indeni Petroleum
Refinery board chaired by Yamfwa Mukangwa has met 12 times from
May 2017 to now, only indicates how public resources are being
wasted in the country. The responsibility of the board is to
set policies in the company and the management which works on a
daily basis implements those policies. There can be no
circumstances whatsoever that the board is required to meet so
many times in the space of five months,” Milupi said.

“It is even more shocking that each time this board meets, it
is reported that they have demanded sitting allowances of
[between] K7,000 to K21,000. If they are sitting so many times
what is it that they are discussing? It clearly shows that
these meetings are being called to create conditions for them
to be paid”

Milupi noted that board members were only supposed to meet four
times a year.

“Ordinarily board members are supposed to sit once every
quarter which is once every three months. Other companies’
boards sit even less [times]. Because if you have a company
that runs properly and you have a board secretary who
functions, every meeting has an agenda,” said Milupi.

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