The Special Adviser to the Governor on Parastatals Monitoring Office (PMO), Mr. Afolabi Ayantayo, has revealed that Ministries, Agencies and Parastatals of the government must establish a structure that promotes corporate governance.
Speaking at a virtual seminar on Corporate Governance organised for Chief Executive Officers of the State’s Parastatals/Agencies with the theme ‘Digging Deep into the T.H.E.M.E.S. Agenda’, the Special Adviser explained that the principle of corporate governance improves the potential of an organisation to standardise its operations.
He described the concept as a global approach that creates a corporate culture of transparency, accountability and disclosure, which enhances the long-term prosperity of an institution.
Ayantayo said the governance structure in Lagos State identifies the distribution of rights and responsibilities among different participants in the corporation such as the Board of Directors, Managers, Shareholders, Auditors and Regulators, but noted, however, that there is a need to improve the knowledge of government officials on the ideals of corporate governance.
While outlining the relevance of the concept of corporate governance in achieving the T.H.E.M.E.S Agenda, the Special Adviser submitted that the model promotes transparency which ensures strong economic development, adding that incorporating the principle into daily operational management of government’s institutions will encourage equitable service delivery.
“Parastatals, Organisations and Agencies perform key roles in delivering specific services to the general public in line with established laws and government policy directives. The mechanism that enhances dynamic performance is entrenched in corporate governance”, he maintained.
The Special Adviser revealed that the seminar will bring to the fore the relevance of the phenomenon in promoting inclusive society and establish a suitable model that will sustain its practice in all MDAs, which according to him, will help accounting officers to influence strategic decisions towards achieving the T.H.E.M.E.S mandate.
In her remarks, the Permanent Secretary, Parastatals Monitoring Office (PMO), Mrs. K.A.O Ajenifuja, pointed out that government policy directives encourage decisive and consistent decision-making, implementing corporate governance principles into the working environment to further advance efficiency.
She posited that while Ministries are usually saddled with the formulation of developmental policies, the implementation is carried out by Parastatals and Agencies, hence, it is imperative that the Head of Agencies have a clear understanding of the focus of the present administration in the delivery of good governance.
“In understanding our functions better, we must know why Agencies and Parastatals are set up by the government. Simply because governments desire to make certain qualities of life obtainable for the majority of citizens through the running of some essential services, which may not be effectively managed by the private sector”, she noted