People's Democracy

BACK DOOR ENTRY OF PVT SECTOR IN PSE BOARDS 

CITU Flays The Move 

THE Centre of Indian Trade Unions (CITU) regret to note from prime minister’s inaugural address at conference of chief executives of public sector enterprises (PSE) that he is not aware of factual position when he pleads for induction of so-called “independent” directors to ensure what he calls greater efficiency and effectiveness in decision making process of PSEs. CITU calls upon the government to clarify the basis of identifying some one as “independent” while including him/her as a “non-functional” director. The factual position is that all sorts of people mostly from private sector including the competitors of the PSEs concerned are being inducted as “independent” director in the PSEs for subserving the interest of private sector. CITU urges the prime minister to go through names of independent directors in PSEs to find out how such people with clear conflict of interest were inducted even in the Board of Navratna PSEs. CITU wonders how a Navaratna PSE like Bharat Heavy Electricals Limited (BHEL), a leading Capital Goods Industry would be benefited with what the prime minister calls as “expertise” of an independent director, now in BHEL Board, engaged in zarda (chewing tobacco) business like Gopal Group.

CITU demands that as part of participative management involving all stakeholders, government should immediately induct worker’s representatives elected through democratic process in the Board of PSEs. CITU also feels that instead of Tom, Dick and Harry from private sector masquerading as “independent” expert or “social activist”, the retired chief executives/directors of PSEs with proven expertise, experience and commitment to public sector should be given their due recognition as “non-functional” directors in PSEs.