Payments to Chairpersons and Boards of Directors of State entities slashed on President’s directive

Thursday, 16 January 2020 02:10 - - {{hitsCtrl.values.hits}}

Circular issued by President’s Secy. limiting to Chairpersons’ monthly payment to Rs. 100,000, Directors’ to Rs. 25,000
Strict guidelines for use of vehicles, fuel allowances
Appointment of Working Directors stopped
Changes part of initiative to create public sector committed to zero tolerance to waste, irregularities, corruption

The Presidential Secretariat has issued a circular limiting the monthly allowance paid to Chairpersons of State institutions to Rs. 100,000 and the allowance for members of the Board of Directors to Rs. 25,000.

Secretary to the President P.B. Jayasundera

In the circular addressed to all Secretaries to Ministries and State Ministries, Chief Secretaries, Secretaries to Governors, Heads of Departments and Statutory Organisations, the Secretary to the President P.B. Jayasundera informed that Chairpersons of any such entity/institution could only draw an allowance of Rs. 100,0000 per month, be entitled to use only one official vehicle and a fuel allowance of up to 150 litres per month, or a monthly allowance and other facilities specified by the Treasury, whichever is less.

They were also informed that members of the Board of Directors can only draw an allowance of Rs. 25,000 per month, regardless of the number of Board meetings held within the month.

The circular also said that Board Members are not entitled to use official vehicles, other than for the purpose of attending a Board Meeting, being an assigned duty.

Any diversion of these conditions requires a special approval of the Presidential Secretariat with the recommendations of the Secretary to the Treasury, the circular said.

The circular, titled “Appointment of Boards of Directors and public expenditure in Ministries, Departments, Government Agencies, Statutory Bodies, State Corporations, State-Owned Banks and Insurance Companies, Fully or Majority Owned Companies and all connected Subsidiary Companies” also said to refrain from appointing Working Directors in the process of making new appointments. In the event any have already been appointed, the head of the relevant body has been requested to make necessary corrective action.

Jayasundera said the changes are in keeping with the President’s initiatives of creating a public sector committed to zero tolerance to waste, irregularities and corruption.