No. 4/2018 PuBLic EN1TriES CoRPORA:m GovERNANCE Cap.10:31 The Facilitative and Participatory Role of Governments 434. The role of govemment is to provide an enabling environment within which the private and public sector can thrive. 435. Govemment may play a participatory role in economic development through Parastatals and State-controlled companies. 436. It is a fundamental role of Govenunent as the biggest employer in the economy to observe corporate govemance principles in Government Ministries, Parastatals and State-controlled companies. 437. Govemment should provide relevant infrastructure and basic service enablers such as electricity, water, conmmnication facilities, among others, and permit private actors to do the same. This enables companies, individuals and Government itself to function efficiently in the economic development of the country. 438. Govemment, through its agencies at every level, must ensure that there is fair play in business. 439. Legislation is necessary to ensure faimess and transparency in business dealings and is one of the tenets of good corporate govemance. 440. Govemment has a major role to play in combating corruption. 441. There must be will-power to combat corruption on the part of the top leadership of the country which should cascade down to the ordinary man and woman. The will -power should filter through to directors and managers of companies, parastatals and State-controlled companies. 442. Government should introduce legislation and other measures to combat corruption and set up an anti-corruption commissions with the necessary legal powers. 443. Government should itself respect all laws and regulations so as to set a good example. 444. Govemment should consider and adopt the most effective legislative measures to enforce good corporate governance. 445. Enforcement can be statutory-based (i.e., legislated) or a combination of both. 446. Government should uphold and play a meaningful role in instilling good values and ethics. 119 SECOND SCHEDULE (Sections 26(l)(b), 31(1) and (2) and 45(1)(b)) PRINCIPLES OF GooD CoRPORATE GovERN'ANCE FOR PuBuc ENTITIES PART I REL~<\TIONSHIP BEf\VEEN PtillLIC ENTITIES AND THE GOVERNMENT ANTI OTHER PARTIES 1. The Government's relationship to its public entities is similar to the relationship between a holding company and its subsidiaries, features of which include(a) a strong interest in the financial performance of the public entities; and (b) reporting and accountability arrangements that facilitate appropriate oversight by the Government; and (c) remedial action by the Government where the public entities' strategic direction deviates from that preferred by the Government. 2. There should be a clear separation between the Government's ownership function and other State functions that may influence the conditions for public entities, particularly with regard to market regulation. As a rule, the Government should not regulate the market so as unduly to favour public entities.