This archive report was first published on 30 June 2019.
On a recent visit to a neighboring East African state, I met an acquaintance who shared with me a story of public sector corporate governance shenanigans that echoed our own experiences.
The acquaintance, whom I'll call Matiku, was a board member of a parastatal overseeing an important industry and key economic driver in his country. With barely two months left in their first three-year term, the line minister announced the dismissal of the entire board.
Matiku and his colleagues were rightfully indignant, as there had been no malfeasance or scandal surrounding their role prior to the minister's announcement. The board chair, a presidential appointee, was particularly upset, questioning the minister's authority to dismiss him.
The board chair sought an audience with the President, who had appointed him. The meeting went well, with the President revealing that the minister had asked him to fire the chairman but couldn't provide a good reason. The President advised the chairman to call a press conference and assert that only he had the authority to fire the chairman, not the minister.
The chairman followed the President's advice, and the media went to town with the story, highlighting the chairman's bravery in defying the minister. Within 48 hours, the board was back in office. However, the minister reappointed the board at the end of their two-month term, likely after receiving a tongue-lashing from his boss.
At a welcome-back event, the line minister explained that he had fired the board to test them, but Matiku and his colleagues remained puzzled by the minister's actions.
As Matiku reflected on the experience, he noted that the minister could have simply waited two months for their terms to expire before making any changes to the board.
