“Each of you should use whatever gift you have received to serve others, as faithful stewards of God’s grace in its various forms.” — 1 Peter 4:10
Barbados has long relied on statutory corporations and state-owned enterprises, or SOEs, to deliver essential services — from water and transportation to health care, education support and national development. These entities exist for one reason: to serve the public interest efficiently, transparently and with accountability. If they fail on governance, they fail in their purpose.
The challenge is not a lack of talented people in our SOEs. We have them. The real challenge is ensuring that governance structures, oversight mechanisms and performance standards are consistent, modern and applied uniformly. A piecemeal approach leaves too much room for ambiguity, political interference and operational drift.
A generic governance framework for all SOEs should rest on four pillars:
1. Clear Mandate and Performance Metrics
Every SOE needs a documented mandate that clearly separates policy from operations. Government sets policy. The SOE executes it. That line must be sharp. Each entity should also have three to five measurable key performance indicators tied to service delivery, financial sustainability and customer satisfaction. If you can’t measure it, you can’t manage it.
2. Professional, Skills-Based Boards
Boards should be appointed based on competence, not connections. A standard skills matrix covering finance, law, operations, digital transformation and risk management should guide selections. Board terms, induction and evaluation processes must be uniform. There should be clear separation between the roles of chair and CEO to avoid conflict and micromanagement. In Singapore, ministers select CEOs for their professional competence, and CEOs in turn choose board chairs and members who support the SOE’s mission.
3. Transparency and Public Reporting
Citizens fund SOEs through taxes and tariffs. In return, they deserve timely annual reports, audited financial statements and plain-language performance updates. A central SOE dashboard published quarterly would build public trust and allow for fair comparisons across entities.
4. Risk and Compliance Culture From procurement to cybersecurity, SOEs must adopt standardized risk registers and strong whistleblower protections. The goal is not to create bureaucracy, but to safeguard public assets and encourage staff to speak up when necessary.
Barbados cannot afford SOEs that drift with every political cycle. Consistent governance gives staff clarity, boards backbone and the public confidence that their institutions are working for them — not the other way around.
The next step is to legislate a baseline SOE Governance Code applicable to all entities, with flexibility for sector-specific adjustments. That code should be simple, enforceable and reviewed every three years.
If we get governance right, our SOEs can move from being viewed as liabilities to becoming engines of national resilience and service excellence.
What’s your view?
Dr. Basil Springer GCM is a corporate governance adviser. He can be reached at basilgf@marketplaceexcellence.com. His columns may be found at www.nothingbeatsbusiness.com.