THE Khyber Pakhtunkhwa government uses board of directors consisting of professionals to manage many provincialowned companies. It is a good idea, but the results of the past few years show that none of the companies have achieved any significant results.
In the US, boards of directors are successfully used to manage successful companies. But the Enron scandal of 2001 shook that confidence up. It showed that the board of directors of companies can use their position to give themselves bonuses and other benefits while running the company into debt and reporting fake financial profits.
As a consequence, a new law was enacted that was called the SarbanesOxley Act (Sox Act), which increased punishment on boards of directors and audit companies to ensure that everyone acts responsibly and professionally.
Heading the company as a board member is an important task and the people responsible should be punished accordingly if they fail. The PTI government in KP should enact laws that will hold the board of directors, CEO and senior managers of the government and public companies responsible and punish them with strict laws if they fail to report mismanagement, corruption, etc.
