Background
In 2003 the operational activities of the former Telecommunications
Board were incorporated and Jersey Telecom commenced operations
as a company wholly owned by the States.
At 32 December 2013, the States’ interest in the JT Group Ltd (JT) was valued at £183.5 million.
Scope
This review considers the adequacy of the States governance arrangements to discharge their responsibilities as a shareholder.
Conclusions
The States have developed the function as shareholder and, whilst there is substantial compliance with the Memorandum of Understanding between the States and JT, the Memorandum needs updating.
JT has changed significantly since incorporation. The States should reconsider why they own JT. If the States decide that they wish to continue to own JT:
- there should be a clearer link between the objectives as owners and the way in which the States monitor the performance of JT
- the resources available to perform the shareholder function should be reviewed; and
- public accountability of JT should be enhanced.
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