The States as Shareholder – Follow-up

Background

The States control seven companies. These have a substantial financial impact for the States and economic impact for the Island. Although each company has its own management with responsibility for effective stewardship of the company, the States have an important role as owner to ensure that their interests are being protected and advanced.

Scope

This review follows up the C&AG’s 2014 review of the Shareholding in the JT Group Limited (Jersey Telecom) which had made wide-ranging recommendations .  These recommendations were broadly applicable to all seven States controlled companies.

The follow up review focusses on the States’ oversight, in particular of Jersey Telecom and Ports of Jersey.

Conclusions

There has been slow progress in implementing recommendations. There are two relevant factors:

• a culture where there is not a strong corporate priority to implement recommendations and monitor and report that implementation; and
• a disparity in the level of expertise of the shareholder function and of the controlled companies.

The States have recently strengthened their shareholder function, but it is too early to see the impact.