KOCHI: Industries Minister Elamaram Karim on Monday warned the chief executive officers of public sector undertakings (PSUs) against inefficiency, corruption and sycophancy. "Inefficiency would not be tolerated. Nor should the CEOs think that godfathers can protect their positions."

He was inaugurating `Synergising PSUs,' a convention of CEOs, here. The CEOs would be given more freedom to manage the day-to-day affairs of the companies. There would be no interference in matters such as appointments. Mr. Karim advised the CEOs to take firm decisions within their powers and stop rushing to the Secretariat or the Minister to solve problems they could tackle themselves.

Only those confident of running the PSUs efficiently and within the policy framework adopted by the LDF Government should continue at the helm of the companies.

From now on, the PSUs would be required to submit a report on their performance within the fifth of every month. The fixed proforma submissions would account for the monthly progress of the company, its achievements and financial position. The chief executives would be responsible for the submission of these reports.

One-time settlement

The Government was drawing up a list of PSUs which could be revived on a priority basis. The Minister asked the CEOs to prepare bankable projects in consultation with trade unions and experts. This would help in a one-time settlement being planned by the Government for sick undertakings. Money for the one-time settlement would come from the Government as well as financial institutions.

The bankers agreed to cooperate. They had asked for constitution of a committee to monitor the utilisation of the money provided under the settlement. The bankers and the heads of sick PSUs were scheduled to meet on August 30. The Minister also asked the CEOs to stop going to the press with "exaggerated" reports of their achievements. He drew their attention to an irrational system of overtime payments and production incentives which contributed to financial losses.

The Minister called for cooperation and coordination among the PSUs in raw material purchases, marketing strategies, manpower training and research and development.

But cooperation and coordination should not be an excuse for dumping substandard products or jacking up prices.

Cooperation within the limits of quality and price competitiveness was imperative, he said.

T. Balakrishnan, Principal Secretary (Industries and Commerce); P.H. Kurien, Secretary (Industries); G.C. Gopala Pillai, Chairman and Managing Director of FACT; and T.O. Sooraj, Director (Industries and Commerce), spoke.

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