PAC asks govt to float 25pc JCF share to locals
KATHMANDU:
The government has been suggested to float Janakpur Cigarette Factory’s (JCF) 25 per cent shares to the locals.
The factory should float its share to the locals to involve them for its safety and smooth operation, directed Public Accounts Committee (PAC), while approving a report from subcommittee headed by the committee Rabindra Prasad Adhikari.
The committee has blamed both management and employees for the closure of the factory. “Finance Ministry and Ministry of Industry both failed to monitor and operate the factory,” committee members blamed, adding that both should have monitored it on regular basis and taken prompt action to avert the current crisis. The factory has also not prepared its audit report since the fiscal year 2008-09. PAC has questioned the motive of managing director of the factory for not preparing the audit report. “The factory has to prepare and present audit report, even if the factory is not operational,” the committee said, blaming the managing director for being incompetent. The PAC has also directed the factory to carry out auditing at the earliest possible and submit it.
The report has also asked the government to formulate short-term and long term action plan after a detailed study of its sustainability. Apart from, the committee has urged the government to replace the existing management board and bring in active and professional board. “The government should operate the factory by appointing high level civil servant unless it recruits new members in the management board,” the committee directed, asking the government to operate the factory at the earliest.
The government had in November 1964 set up JCF.
At a glance
• Paid up capital Rs 40.8 million
• Cumulative Loss Rs 800.80 million
• Number of employees 985
Source: THT
The government has been suggested to float Janakpur Cigarette Factory’s (JCF) 25 per cent shares to the locals.
The factory should float its share to the locals to involve them for its safety and smooth operation, directed Public Accounts Committee (PAC), while approving a report from subcommittee headed by the committee Rabindra Prasad Adhikari.
The committee has blamed both management and employees for the closure of the factory. “Finance Ministry and Ministry of Industry both failed to monitor and operate the factory,” committee members blamed, adding that both should have monitored it on regular basis and taken prompt action to avert the current crisis. The factory has also not prepared its audit report since the fiscal year 2008-09. PAC has questioned the motive of managing director of the factory for not preparing the audit report. “The factory has to prepare and present audit report, even if the factory is not operational,” the committee said, blaming the managing director for being incompetent. The PAC has also directed the factory to carry out auditing at the earliest possible and submit it.
The report has also asked the government to formulate short-term and long term action plan after a detailed study of its sustainability. Apart from, the committee has urged the government to replace the existing management board and bring in active and professional board. “The government should operate the factory by appointing high level civil servant unless it recruits new members in the management board,” the committee directed, asking the government to operate the factory at the earliest.
The government had in November 1964 set up JCF.
At a glance
• Paid up capital Rs 40.8 million
• Cumulative Loss Rs 800.80 million
• Number of employees 985
Source: THT
