SCOPE pitches for amendments in corp governance norms

Business Standard: Jaipur: Saturday, March 08, 2014.

Standing Conference on Public Enterprises (SCOPE), apex body pursuing the interests of public sector enterprises, has expressed need for amendments in corporate governance norms as per changing global trends.

SCOPE Director General U D Choubey said that there is a need to review the corporate governance norms in line with the worldwide trends and to appoint an expert committee to play a role model on corporate governance.

He said the post recession period, many developed countries have reviewed and modified stipulations, including taking away control of administrative ministry, creation of sovereign wealth fund, giving up practice of official and nominee directors among others.

Choubey, who was is the city for addressing a national workshops on board interview and key issues in implementation of RTI Act in central public sector enterprises, told reporters that the government should take suitable steps for reforms.

"We have several challenges and issues in the functioning of public sector enterprises and reforms with a professional view aimed at long term empowerment instead of short term gain is the answer," he said.

Saying that sometimes RTI is misused for unethical gains, Choubey laid emphasis on bringing private sector and NGOs also in the ambit of the act to ensure transparency in all the areas.

"RTI has improved the image public sector but it has hazards also and provisions should be upgraded and amended.

"Since lot of public money is being spent by private corporate institutions and in public private partnership projects, RTI should be extended to them for bringing transparency and accountability," he said.

He said that public sector enterprises generate approximately Rs 1,62,000 crore in all as revenue to government and around 10 per cent of the total enterprises, mainly that of oil and gas sector, contributes maximum of the revenue to the exchequer.

The board interview workshop, aimed at grooming effective leaders in PSEs by facilitating their transition from the role of a senior management level to that of a Board level position, held yesterday whereas the workshop was on key issues in RTI implementation in PSEs today.

SCOPE is making efforts to bring greater professionalisation of PSEs boards, improving their corporate governance and encouraging them to explore new horizons in the global market, according to a release.