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Business Daily (Nairobi)
June 23, 2008
Editorial Article
As we enter the season of hiring top managers to man our State corporations to replace those whose terms have expired, the hiring process is set to come under close scrutiny.
While some ministers have opted to hire the executives for State firms under their watch through open and competitive processes, others have filled the positions through direct appointments with little regard to merit.
The latter has resulted in performance contracts being thrown out of the window as ministers watch over their cronies as they run down State firms.
With the coalition Government having brought with it new ministers from diverse parties, temptations will be high for the ministers to hand-pick their business and political cronies to man these vital sectors of the economy.
Already, lobbying for the executive positions among political operatives who failed to gain entry into Parliament has hit fever pitch.
We argue that the State-owned firms should not be used to rehabilitate political rejects as the action is set to hurt the performance of firms and the economy at large.
Instead, ministers should take to hiring the top managers through competitive bidding to inject meritocracy and good governance into the state owned firms for the good of the firms and the country.
Examples abound of benefits that come with putting into office individuals through merit, while the trail of destruction left by unqualified managers is also evident.
Ministries of Health and Trade are some of the few that have struck with hiring top managers through open and competitive bidding.
And impressive performance by bodies under the twin ministries is beginning to show, thanks to their competent managers.
A good example is East Africa Portland Cement, which has been turned around by chief executives picked through competitive bidding after hand-picked managers dragged the firm into deep losses.
A huge fraction of State firms where managers were hand picked have had a poor show.
As result, the need to pick managers through merit rather than cronyism is this time round more important than ever before.


