Government Rs 200bn in public entities at risk
KATHMANDU,NOV 14:
Some Rs 200 billion investment of the government is at risk. The government had lent the huge amount to different Public Enterprises (PEs) and due to their continuous poor performances, the government is wasting the tax payers money on them.
“The government had invested some Rs 100 billion to the public entities as loan and equal amount as shares,” joint secretary at the Public Enterprises Coordination Division Ram Sharan Pudasaini said, adding that the government’s investment is at risk since there is a slim chances of its loans and investments’ being returned.
Though, Finance Ministry is currently preparing comprehensive policy to regulate all the Public Enterprises according to the recommendation of the parliamentarians in Public Accounts Committee (PAC), it has been already too late.
“The Public Enterprises Coordination Division is working hard to form Public Enterprises Management Board or expert committee to carry out public enterprises related tasks from one window,” he informed, adding that the ministry is formulating policy on management and operational parts to materialise the concept of management board or expert committee.
The proposed policy will incorporate wide ranges of issues including managerial reformation, financial conditions, criteria of appointing chief executive officer and personal management under its part of management reform, Pudasaini added. The report will also recommend different issues under the operational parts. “Monitoring of public entities, business plan, and operational activities will be included in the operational part,” he said, “The ministry is preparing to bring all public enterprises under an umbrella ending the current jurisdiction dispute among different line ministries and Finance Ministry.”
It is high time to decide whether to liquidate these public enterprises or to operate them in competitive environment.
The Public Accounts Committee (PAC) had earlier recommended the government to liquidate three different public enterprises — National Construction Company, Nepal Engineering Consultancy Service Centre and The Timber Corporation of Nepal.
In its report, the PAC had also suggested merger of different nine public companies and to adopt Public Private Partnership (PPP) model to operate some public enterprises more effectively.
“The ministry is incorporating all suggestions in its coming policy document,” Pudasaini pledged, suspecting its implementations.
The government has in this fiscal years budget and last one pledged to form a separate High Level Public Enterprises Management Board. It had also proposed establishment of a holding company – similar to the concept to board — in the budget for the fiscal year 2009-10 but it had failed to walk its talk.
'No strategic partner'
Government apathy towards bringing strategic partners for profitable Public Enterprises has been a pipedream, according to joint secretary at Public Enterprises Coordination Division Ram Sharan Pudasaini. Nepal Telecom is loosing its chances of bringing efficient partner, he said, adding that more public entities like Janakpur Cigarette Factory could be revived, if the government could take timely decision.
Source: THT
