HN: Hiring incompetent board members a serious problem

Prague, Feb 27 (CTK) - The filling of state firms' boards with incompetent people in reward for their political loyalty instead of experts meeting the relevant professional criteria is a serious problem in the Czech Republic, Jindrich Sidlo writes in daily Hospodarske noviny yesterday.

He reacts to the recent appointment of Ivan Fuksa, former Civic Democrat (ODS) MP, deputy finance minister and agriculture minister, as head of the state-controlled Cesky Aeroholding, whose daughters are strategic companies such as the Prague airport's operator or the Ceske aerolinie (CSA) air carrier.

Many suspect Fuksa of having gained the "lucrative cosy post" in compensation for his resigning as an MP and thus enabling the ODS-led government's key tax package to be passed by parliament last autumn.

Maybe prestigious companies such as Google and Coca-Cola were eager to employ Fuksa, the brilliant manager, after his withdrawal from politics and the Czechs should rejoice at him preferring Cesky Aeroholding's offer, Sidlo writes ironically.

Everyone knows this was probably not the case. In spite of this, Fuksa's appointment as head of Cesky Aeroholding, a problem-ridden giant in face of serious decisions, would not be controversial if it were not evident why Fuksa gained the post just now, Sidlo writes.

The filling of posts in state companies' supervisory boards and boards of directors is a very delicate matter. The state has strategic interests in these companies, which is also why it owns them, fully or partially, Sidlo writes.

Elected politicians, on their part, are supposed to defend voters' interests. They should have the right to choose aides they trust, Sidlo writes.

Of course, the above picture is an optimal model that differs from reality. Everyone knows what the reality is like. It is therefore not surprising when people widely view former or even present politicians' seats on state firms' boards as lucrative cosy posts given to them by political parties as a reward for their loyalty, Sidlo points out.

No one would probably raise objections if the prime minister appointed his chief adviser a member of the supervisory board of the CEZ giant energy utility. Why, however, the supervisory board of Severoceske doly, a coal mining company owned by CEZ, includes Tomas Julinek, former health minister for the ODS and a doctor by training? What if some fellow member felt sick at the board meeting? Sidlo asks with sarcasm.

Of course, there are hundreds of similar cases. They are no novelty of either the last years or the Czech post-communist politics, Sidlo writes.

As a foreign example he points to Paul Wolfowitz, former U.S. deputy secretary of defense, who, after certain problems with the war in Iraq that he masterminded, was catapulted from the Pentagon straight to the seat of the World Bank president, which has been traditionally filled by Washington.

It must be added, nevertheless, that Wolfowitz graduated from two prestigious universities (Cornell University and University of Chicago) and in the USA he has the reputation of one of the most influential right-wing thinkers, Sidlo says.

The vow that supervisory boards will always be filled with experts meeting the relevant professional criteria is traditionally made by all leaders promising to introduce a new style in politics because voters appreciate it, Sidlo continues.

The problem is much more serious, however. Three years ago, businessman Vratislav Kulhanek, analysed it at the Czech government's request. He warned the government that purely political nominations of people lacking the necessary professional qualification considerably harm the quality of supervisory boards' works, Sidlo writes.

Kulhanek's warnings and suggestions have remained shelved by the government for the time being because the state's strategic interests are a serious matter, but there are "also other matters, which are important," Sidlo concludes with a hint at political parties' financial interests.