The government has terminated contracts for directors of public enterprise boards, initiating a comprehensive review of these entities.
Minister for Public Enterprises, Hon. Paula Piukala, announced the decision during a press conference on Friday, expressing concerns over their performance.
“This will give the ministry a month to work on reviewing public enterprises,” Piukala said, highlighting plans including a review of legislation relating to the Public Enterprises governance.
Minister for Infrastructure, Dr. Taniela Fusimalohi, revealed that approximately one million pa’anga is allocated for director salaries, highlighting the significance of the review.
Piukala noted that some positions have salaries reaching $200,000, which have not been reviewed for decades. He emphasized the need for a salary review in collaboration with the Remuneration Authority, considering public affordability.
The review will scrutinize financials, particularly directors’ remuneration, before appointing new directors. During this period, public enterprises will operate in a “caretaker mode”, following existing business plans and standard operations.
