The former chair of the State Enterprises Review Committee (SERC) is calling for the depoliticisation of state board appointments.
The call from Dr Terrence Farrell comes after a court ruling that criticised the tendency of State boards to act as mere “rubber stamps” for ministerial directives.
On Wednesday, High Court Judge Ricky Rahim stressed that State board members are not appointed to simply endorse government policies. Instead, he said they are legally obligated to exercise independent judgement, oversight, and due diligence in line with sound corporate governance standards
Farrell, in an interview with Guardian Media yesterday, said the plan to fix the system has already been written but has been ignored.
Farrell chaired the SERC, which submitted a report commissioned by the then cabinet and delivered in 2016. He said it offered a detailed roadmap for overhauling state board governance.
The SERC report examined the structure, purpose, and accountability of wholly owned state enterprises. It flagged rampant inefficiencies, politicised board appointments, and a lack of continuity in policy execution issues that continue to plague the system nearly a decade later.
When asked whether the report was ever implemented, Farrell didn’t mince words:
“The report, like most others, disappeared,” he said.
Among the recommendations were a legislative framework modelled on New Zealand’s State-Owned Enterprises Act, selection of directors based on industry expertise, staggered board terms to prevent wholesale replacement with every change in government and clear performance mandates and real-time monitoring by the Ministry of Finance.
Meanwhile, Movement for Social Justice leader David Abdulah proposed sweeping changes to end what he called political patronage from state board appointments.
He recommended that respected civil society organisations, including the Law Association, trade unions, women and youth groups, and business chambers, all nominate 100 qualified individuals each.
He said the government would then select board members based on competence and relevance, not political loyalty.
“This approach removes race, religion, party and family connections from the process,” Abdulah said yesterday. “People would be serving the nation, not a political party.”
He also proposed staggered board terms, similar to what exists in private sector listed companies, to ensure continuity of expertise and policy execution beyond electoral cycles.
“You cannot build sustainable development if every five years, a new board comes in and throws out the last plan. That’s exactly what contributed to the downfall of Petrotrin,” he warned.
Abdulah dismissed concerns that such civil-society-nominated boards might resist government agendas, pointing out that board members are accountable to the success of the enterprise, not to any party.
He recommended that line ministries, through permanent secretaries or senior officials, serve as the formal link between boards and government policy.
