Bernard Namunane
8 July 2009
Nairobi — Prime Minister Raila Odinga on Wednesday moved to end boardroom wars between ministers and their permanent secretaries over the hiring of parastatal chiefs.
The appointment of managing directors of parastatals is the responsibility of ministers and PSs should stick to their role of advising the ministers, he said.
"Permanent secretaries, in their advisory capacity, must draw the minister's attention to the guidelines governing these appointments," Mr Odinga said.
June 22 circular
The PM's instructions are contained in a June 22 circular to Vice President Kalonzo Musyoka, ministers, Attorney General Amos Wako and permanent secretaries.
His intervention comes against a backdrop of constant wrangling in ministries over the appointment of heads of state corporations.
Last week, the PM met Industrialisation minister Henry Kosgey to sort out conflict between him and PS John Lonyangapuo over the contracts for the chief executives of the Industrial Development Bank, the Kenya Industrial Research and Development Institute and the Kenya Industrial Estate.
Mr Odinga is likely to emphasise his directive this morning when he meets Cabinet ministers, permanent secretaries and parastatal chiefs for a breakfast meeting at the Serena Hotel, Nairobi, to discuss the forthcoming World Economic Forum.
In the circular, Mr Odinga said disagreements have affected a number of ministries and they must be ended.
"In the recent past, appointment of chairmen, board members and chief executive officers of state corporations has been a source of disquiet in some sections of our society," he said.
Some ministers have openly flouted the guidelines of appointment of heads of parastatals as outlined in the State Corporations Act by filling the ranks of public sector bureaucracy with cronies and political allies.
The appointments were being made without reference to the boards of directors of the affected parastatals and sometimes without competitive recruitment.
In an attempt address this, Mr Odinga instructed all ministers to appoint persons who were competent and have integrity. They must also ensure regional balance and take gender interests into consideration.
"Adequate professional representation of relevant institutions must also be ensured," he said.
The PM further stated that his office, which is in charge of supervision and coordination of government ministries, should be informed of any impending appointments of parastatal bosses.
"This will further streamline management of state corporations," he said.
The disagreement between Mr Kosgey and Prof Lonyangapuo was the latest in a series of conflicts over appointment of parastatal chiefs.
The two were locked in a dispute over the fate of Mr William Shimanyula (KIE), Prof Ogada (KIRDI) and the IDB chief executive officer.
Mr Kosgey had written to the three officers asking them to hand over to their deputies, a clear signal that their contracts would not be renewed.
However, Prof Lonyangapuo overturned his decision and advised the officials to stay put. He also said their contracts would be extended for another three years.
"It was not a question of opposing the minister. We simply told him that the right procedures in the hiring and firing of the three managing directors was not followed. The boards of KIE and KIRDI had recommended that the managing directors be given an extension because their performance has been very good," said Prof Lonyangapuo at the time.
The dispute was referred to the the PM and he advised that the parastatal heads remain in office until the correct procedure was followed. He later met Mr Kosgey over the issue.
Investigations by the Nation had earlier revealed that some Cabinet ministers had made appointments to plum positions without following regulations.
Among those who had made arbitrary appointments included Prof Anyang Nyong'o (Medical Services), Prof Hellen Sambili (Sports and Youth), Mr William ole Ntimama (National Heritage), Mr Najib Balala (Tourism) and Mr John Munyes (Labour).
Prof Nyong'o, in one incident, had disregarded the recommendations of the Kenya Medical Training College board which had recommended that Dr Timothy King'ondu's term be extended. Instead, he advertised the job, saying that it would be filled competitively.
Recommendation
Mr Ntimama similarly rejected the recommendation of the NGO Co-ordination Board to renew the term of Mr David Isoe as chief executive and instead appointed former permanent secretary Peter ole Nkuraiya to the position.
Mr Balala appointed his close political adviser, Mr Kenneth Ombongi, to head the Kenya Utalii College without advertising the position.
Dr Ombongi was a history lecturer at the University of Nairobi before his appointment.
And at the Ministry of Transport, Mr George Muhoho was reappointed the Kenya Airports Authority managing director although the board had recommended that his tenure not be renewed.
Prof Sambili also appointed former PS Benjamin Sogomo as the Stadia Management Board boss without following the laid down regulations, a move that caused friction between her and other officials at the ministry.
In September, Labour minister John Munyes sacked the then NSSF managing trustee Rachael Lumbasyo, a decision that was condemned as unprocedural.
Although the minister has powers to appoint the fund's chief executive, the law requires him to base his decision on the recommendations of the Board of Trustees.
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