Board members’ trips banned

PUBLIC enterprises minister Leon Jooste have directed all parastatal board members to stop unnecessary foreign trips and claiming of sitting fees while abroad.

The curbing of foreign trips is part of the new rules that would include getting permission to travel abroad from the ministry that is set up to control state-owned businesses.

Jooste announced this in a media statement yesterday, in which he specifically focused on the wastage of state funds on parastatal board members who go on lucrative paid trips.

“I have received information that some board members undertake foreign trips and earn board fees for the entire duration of such a trip and then the entity will still cover the various associated travel costs as well, resulting in a substantial cost to company and marginal benefit to the entity,” he said.

The minister said a board member undertaking a foreign trip on behalf of a state enterprise will also not be allowed to earn board fees for the duration of such a trip.

“The entity will be responsible for the daily subsistence and travel allowance of the member as well as the cost of flight tickets and accommodation,” Jooste said.

He admitted that there are exceptional cases where a board member may be required to travel abroad. Jooste, however, said the board chairperson will have to request permission from his ministry to travel.

“We may approve such requests if we are convinced that it is unavoidable. I will also need to be convinced that such a trip will generate tangible benefits that shall accrue to the public enterprise failing which approval shall not be granted,” he said.

Before approving an application to travel abroad, Jooste said the financial status of the parastatal will also be scrutinised.

He said board members will only travel under exceptional circumstances.

Jooste also revealed that the matter of the remuneration of boards of directors is something he is concerned about.

That is why he has requested chief executives and managing directors of parastatals to provide him with the total cost of their boards to the company. This include sitting fees, retainers, subsistence and travel allowances, air tickets, honorariums and any other privileges or allowances (monetary or in-kind) offered to board members over the last three financial years. Jooste said this information has started reaching his office.

His decision to curb foreign trips is partly motivated by the information he has received from parastatals and he would like to rectify those without delay.

It was, however, not clear whether chief executive officers who are mostly overpaid will be told to cut their foreign trips.

The minister said all public enterprises have chief executives or managing directors and he is convinced that they are duly equipped to deal with most matters that require foreign travel.

“The CEOs and MDs are already earning fair salaries and I want to see that entities utilise their services to the absolute maximum,” the minister said. Jooste’s directives come at a time government entities are being forced to cut costs as state coffers begin to dry up.