Strengthening Governance in State‑Owned Enterprises (SOEs)
What Are SOEs?
State‑Owned Enterprises (SOEs) are government‑owned entities operating in commercial or strategic sectors such as energy, transport, finance, water, and communications. They are used to deliver public services, generate employment, and implement national priorities
Why Governance Matters
SOEs combine public mandates with commercial operations. Without strong governance, transparency, and accountability, they risk fiscal inefficiencies, reduced public trust, and weakened investor confidence—particularly in low‑ and middle‑income countries.
Objectives of SOE Oversight
- Board Effectiveness: Ensure merit‑based board appointments and balanced composition for effective strategic direction and oversight.
- Risk and Financial Integrity: Establish strong risk management, internal controls, and crisis preparedness systems.
- Transparency and Reporting: Promote regular financial disclosures, debt risk analyses, and compliance with international standards to foster trust and investment.
Nexus PFM Services
- Strengthening Governance & Board Effectiveness: Merit‑based board appointments, board training, performance evaluation tools, and improved stakeholder reporting to enhance transparency.
- Risk Management, Internal Controls & Financial Integrity: Develop enterprise risk frameworks, conduct financial analysis, strengthen internal controls, and enhance crisis preparedness and business continuity planning.
- Process Optimization & Quality Management: Improve operational efficiency and introduce coherent quality management frameworks across SOE processes.
- Internal Audit & Agreed‑Upon Procedures: Provide independent operational audits and reviews to assess financial health and efficiency.
- Integrity‑Proofing Against Corruption & Misconduct: Support anti‑corruption codes, integrity due diligence, whistleblower protection, fraud detection, and public accountability mechanisms.
- Financial & Debt Transparency for Investment Readiness: Assist SOEs with IFRS‑based reporting, debt sustainability and risk analysis, alignment with IMF/World Bank standards, ESG reporting, investor confidence building, and PPP readiness.
- Assessment & Recommendations: Evaluates Parliament’s role throughout the budget cycle and advises on strengthening oversight capabilities.
- Training & Technical Support: Offers tailored workshops and guidance for parliamentary finance, public accounts, and sectoral committees in budget scrutiny and oversight.
