By NOELA EBOB BISONG
Presidential decrees signed June19, 2019 have categorized public enterprises, their remuneration, indemnities and other advantages, and outlined the modalities of applications of certain provisions of Law No 2017/010 of 12 July 2017 which spells out the general status of public establishments and enterprises.
With main focus to encourage hard work and end conflict of authority in the state-run companies, the presidential decrees also go to enhance performance and governance in state-run companies in Cameroon.
The significant innovations brought into the running of state-own establishments according to the decrees, include for instance, the roles of president of Board of Directors and General Managers, which have now been clearly spelt out.
Following one of the presidential decrees, as far as remuneration and other financial benefits are concerned, this will be based on the production of the companies for a period of three years.
The decisions of the board of directors are in the form of resolutions and it is stated in one of its provisions that the president co-signs with one of the members of the board. Also, the mandate of every board member is to be reexamined prior to any sitting, as those who have retired are not suppose to sit at the board anymore. The recruitment of personnel must also respond to specific needs of the establishment as expressed by the General Manager and that in a bid to insure flexibility, and performance, the General Manager (GM) is the one authorized to give out contracts of the state-owned corporation.
Also, if a GM or his deputy is appointed a member of government, they automatically lose their position as GM or deputy.
Even though the running of state enterprises is under the control of the board of directors, they are managed by the GM; however, he must seek the authorization of the board of directors in case of problems in the corporation.
The presidential decrees also classify the state enterprises and corporations into five categories, ranging from FCFA 100 billion as highest turnover to FCFA 5billion for the lowest, and the said classifications are to be carried out every three years by an order of the minister of finance between the 1st of July and the 31st of August.
The innovations also concern remunerations and mission allowances within and out of the country which are now also explicit, leaving no room for excesses.
Some of the implications of the decrees are no doubt going to make the establishments more competitive, as much emphasis has been laid on turnover. Top managers of state-run companies are now expected to make more money to ensure their corporations are highly categorized according to the scale.
Also, the unhealthy conflict of authority observed in most state-run corporations may surely soon be a thing of the past, following the specification of the rules, duties and the limits of the powers between the consultative organ (board of directors) and the executive organ of state-run companies (GM and deputy).
Some experts agree the decrees are timely because they come in with a lot of clarifications on the 2017 law regulating enterprises and corporations, which for example now distinguishes between the powers of board of governors and the executive branch of the structures. However, some maintain that nothing much will be changing in the days ahead, except perhaps the pinch of budget slashes. Pundits have also been quick to accuse that the decrees have been made public because of pressure from the World Bank which had demanded the establishment of such a working document and that the government of Cameroon has only complied because it hopes to obtain some loans from the World Bank.