PAC wants SPC’s powers on boards removed
The Public Appointments Committee (PAC) of Parliament has proposed amendment of laws that designate the Secretary to the President and Cabinet (SPC) to serve as board chairperson of statutory corporations.
The office of the SPC, currently held by Zanga-Zanga Chikhosi, chairs boards of Electricity Generating Company, Power Market Limited, National Oil Company (Nocma) and the Greenbelt Investment Limited.
Presenting a report in Parliament for the period July 2020 to November 2021, PAC chairperson Joyce Chitsulo observed that there are serious problems in institutions whose boards are chaired by the SPC.
She cited the fuel procurement dispute between Nocma and Malawi Energy Regulatory Authority (Mera), saying her committee noted that Nocma was undermining Mera’s authority because of the power of its chairperson.
Said Chitsulo: “If the office of the SPC did not chair the Nocma board, the SPC’s office would have intervened to resolve the issue and in the process, saved the image of the government which is part of the responsibilities of the SPC under the Public Service Act.
“It would be imperative, therefore, that the SPC, as head of the Public Service, should not be involved at operational level to avoid situations of conflict of interest between the SPC’s statutory functions as head of the Public Service and the other assigned duties as board chairperson of parastatals.”
She said the committee, therefore, recommends that relevant Acts of Parliament that have designated the SPC as board chairperson be amended to explicitly fortify the position of SPC as head of the Public Service and provide that the office shall not serve as a substantive chairperson of a board of a statutory corporation.
The committee has since taken the responsibility to draft a Private Member’s Bill on the amendments as recommended in the report.
Reads the report in part: “To that effect, the Chairperson of the Committee should move a motion in the House under Standing Order 74 and 122, on the committee’s behalf, seeking the authority of the House to draft the Bill.”
Chitsulo said the report also presents observations and recommendations on compliance with the Gender Equality Act in the statutory boards, which has been an issue.
She emphasised that the committee’s observations and recommendations only relate to matters of public appointments and the environment they operate in.
Recently, the Office of the Ombudsman said it had received a complaint on alleged conflict of interest arising from the SPC’s chairmanship role at Nocma.
The complaint claimed Nocma board chairmanship is not voted for but is imposed by government, leaving decisions of Nocma to be primarily influenced by government through the SPC.
In the opinion of the complainant, the SPC’s presence makes it difficult for Mera to effectively regulate Nocma
The position of SPC is established under Section 92(4) of the Malawi Constitution which states that the SPC shall: have charge of the Cabinet office; be responsible, subject to the directions of the Cabinet, for arranging the business, and keeping the minutes of the Cabinet; convey the decisions of the Cabinet to the appropriate persons or authorities; and have such other functions as the Cabinet may direct.
