Former Managing Director of Cal Bank, Frank Adu Jnr., has described the appointment of Members of Parliament (MPs) to the boards of state-owned enterprises as “ludicrous,” warning that the practice undermines accountability, promotes conflicts of interest, and weakens corporate governance in public institutions.
Speaking on Joy News’ PM Express, Mr. Adu argued that MPs have a constitutional duty to scrutinize the performance and finances of state enterprises through Parliament. Serving on boards of the same institutions they are meant to hold accountable compromises that oversight role, he stated.
He queried how an MP sit on a board and later return to Parliament to question that same board’s activities, describing it as a clear conflict of interest that erodes public confidence in governance systems.
The practice of appointing MPs to boards has come under increasing public criticism, with many attributing it to the politicization of appointments in state institutions. Even Speaker of Parliament Alban Bagbin has distanced himself from such appointments, saying he would not have accepted a board position because of the potential clash with his legislative responsibilities.
Observers and governance experts believe this trend has contributed to the persistent underperformance of many state-owned enterprises, with some entities recording recurring losses, weak internal controls, and questionable procurement practices.
Mr. Adu stated that key appointments to boards and management positions often reflect political considerations rather than competence or merit.
Calls have intensified for a second look at the policy, with some governance experts suggesting that MPs currently serving on boards should resign to preserve the integrity of Parliament and enhance the performance of state enterprises.
In the coming weeks, experts say they will be watching closely to see if these calls will prompt a shift in policy or resignations by MPs who currently sit on such boards.
The conversation also forms part of a broader national discourse on strengthening public sector accountability, especially as many state institutions continue to face operational and financial challenges.
