PM for highest standard of corporate accountability in PSUs

PM for highest standard of corporate accountability in PSUs

New Delhi: Facing criticism over scams involving private players in alleged nexus with policy makers, Prime Minister Manmohan Singh on Wednesday asked the public sector to ensure “highest standard of corporate accountability."

Addressing a gathering of heads of top PSUs, the Prime Minister said the government was committed to a strong public sector which has acquired vitality and was ready to face market scrutiny.

“We are also conscious of the need to ensure the highest standards of corporate accountability in the public sector. We are one of the very few countries in the world that have implemented mandatory code of corporate governance for their public sector enterprises," he said.

Giving away awards for best performances, Singh said the government has encouraged the PSUs to adopt a “robust and transparent Performance Management System."

Batting for better incentives for PSU executives and workmen, the Prime Minister said “measures such as performance related pay will result in sound practices for better corporate governance, which is of critical importance in today’s competitive environment."

Singh’s remarks on corporate transparency comes at a time when questions are being raised on practices followed by some of the large industrial houses in influencing the policy making process of the government.

The estimated Rs1.76 lakh crore 2G spectrum scam has highlighted the nexus between some industrial houses, politicians, bureaucrats and media persons.

The government is also facing a flak on other scams like Adarsh Housing Society.

Confident that the PSUs can face the global challenges, Singh said the government is working on a policy enabling them to search raw material assets around the world.

“In some sectors, there is also a need for our public sector enterprises to explore global opportunities.

In particular, we need to step up our search for raw material assets.

“The government is working on a policy to support our public sector enterprises in this effort," the Prime Minister said.