The state of State

Friday, 13 May 2011 00:14 - - {{hitsCtrl.values.hits}}

CHAIRMEN and directors of all State banks, corporations and boards have been given a lucrative allowance boost through a circular issued by the Finance and Planning Ministry. Under it, the heads and directors of State institutions have been divided under five categories and provided a raise in allowances according to the group they fall into.

Top officials who fall into the “A” category will see their allowances increase to as much as Rs. 90,000 a month while the directors in this group will have the chance to enjoy a raise up to Rs. 70,000. The rest of the grades have been allocated slightly smaller amounts according to their grading. Additional allowances have also been increased by the circular including non-executive directors’ payments for meetings. In the earlier circular that was issued in 2003 the categories were limited to three and the highest allowance given to chairmen was Rs. 40,000 and directors Rs. 30,000.

This circular was issued on 29 April while the university teachers’ crisis was brewing. While it would be unfair to compare one public sector with another, it is nonetheless interesting to see how salary increases are meted out in the State service. On one hand, university teachers who are among the lowest paid in South Asia are clamouring for a salary increase, which the Government has not committed to grant, but on the other, salaries of another sector are increased. This allowance increase would probably not amount to the same Government expenditure as the one demanded by the university teachers, but one wonders if the latter’s need is greater and has greater impact on the economy.

Be that as it may, it is also well-known that several key corporations and boards of the Government are making massive losses and have low levels of efficiency. Recently the former Chief Engineer of the Ceylon Electricity Board (CEB) was suspended for allegedly misappropriating over Rs. 160 million in public money. What is even more shocking is that he was appointed as the CEB Chief Engineer after this massive fraud was uncovered when he was General Manager of the Lanka Electricity Corporation (LECO), but was still allowed to hold a high position in the CEB while being under investigation by the CID.

This incident only scratches the surface of massive corruption, negligence and incompetent management within the State sector. However, it does not mean all State enterprises are bad in the same way; one apple does not make the entire barrel rotten. Nonetheless, it does give more impetus for the public sector to chip in and perform in a manner that justifies the perks that they receive; after all they do come from public money.

As the President has time and again reiterated, the public sector has a massive role to play in the development of Sri Lanka. Hardworking, efficient and honest State officials will never be begrudged the money that they are paid, but they are also honour-bound to ensure that the institutions that they are in charge of deliver on their duties and pave the way for other public sectors to follow. Promoting good governance, transparency and accountability will assist in this endeavour and bring better opportunities for the entire country.