PAC recommends liquidation of PEs
KATHMANDU:
Public Accounts Committee (PAC) under Legislature Parliament today recommended to liquidate three of the public enterprises (PEs) as they are insolvent; merger of different nine public enterprises and create only four entities; and operate some under Public Private Partnership (PPP) model.
Approving the report from Public Enterprises sub-committee, the PAC suggested the liquidation of National Construction Company, Nepal Engineering Consultancy Service Centre and Timber Corporation of Nepal.
“The subcommittee concluded that shutting these enterprises down will save government expenditure,” subcommittee coordinator Deep Kumar Upadhyaya said, adding that absence of these company will not impact service to the public as the private sector is competent enough to provide these services.
The National Construction Company was established in August 1961 with the objectives to promote qualitative civil construction works in the country and to achieve project cost moderator. It has a total of Rs 40 million accumulative loss by the end of fiscal year 2009-10.
Similarly, aiming at providing consultancy services, the government had set up Nepal Engineering Consultancy Service in December 1996. It also has Rs 5.27 million accumulative loss by the end of 2009-10. The government had in November 1960 established the Timber Corporation of Nepal to protect the forest in a systematic way, sale and distribute the timber to the public and other parties in reasonable price. It also has accumulative loss of Rs 215.04 million by the end of fiscal year 2009-10.
In the report, the PAC also suggested the merger of different nine public enterprises with each other and form only four out of the nine.
The report has asked the government to merge Krisi Samagri Company and National Seed Company, Industrial Estate Management Ltd with National Productivity and Economic Development Centre, and Herbs Production and Processing Corporation with Nepal Medicine Ltd and Singhdurbar Baidhyakhana, and Rural Housing Company with Nepal Housing and Finance.
“It is necessary to merge similar types of public entities to consolidate the services and save government expenses, Upadhyaya said, adding that the move will strengthen the PEs too.
The report has further recommended the government for the unification of Janak Education Materials Centre and other printing related entities and formation of independent authority. “National Trading Ltd and Export Promotion centre should also be merged to make one entity,” the report suggested, adding that after merger, the entities should be operated in a PPP model.
Similarly, it has recommended the government to convert Nepal Television and Gorkhapatra Santhan into company to make them more competent.
“Dairy Development Corporation should adopt cooperative model as it is directly related to the farmers,” it said, adding that DDC should adopt cooperative model to enhance farmers’ ownership too.
Political interventions, incompetent human resources, over staffing and corruption are major hindrances for the healthy development of public enterprises, Upadhyay added.
Source: THT
Public Accounts Committee (PAC) under Legislature Parliament today recommended to liquidate three of the public enterprises (PEs) as they are insolvent; merger of different nine public enterprises and create only four entities; and operate some under Public Private Partnership (PPP) model.
Approving the report from Public Enterprises sub-committee, the PAC suggested the liquidation of National Construction Company, Nepal Engineering Consultancy Service Centre and Timber Corporation of Nepal.
“The subcommittee concluded that shutting these enterprises down will save government expenditure,” subcommittee coordinator Deep Kumar Upadhyaya said, adding that absence of these company will not impact service to the public as the private sector is competent enough to provide these services.
The National Construction Company was established in August 1961 with the objectives to promote qualitative civil construction works in the country and to achieve project cost moderator. It has a total of Rs 40 million accumulative loss by the end of fiscal year 2009-10.
Similarly, aiming at providing consultancy services, the government had set up Nepal Engineering Consultancy Service in December 1996. It also has Rs 5.27 million accumulative loss by the end of 2009-10. The government had in November 1960 established the Timber Corporation of Nepal to protect the forest in a systematic way, sale and distribute the timber to the public and other parties in reasonable price. It also has accumulative loss of Rs 215.04 million by the end of fiscal year 2009-10.
In the report, the PAC also suggested the merger of different nine public enterprises with each other and form only four out of the nine.
The report has asked the government to merge Krisi Samagri Company and National Seed Company, Industrial Estate Management Ltd with National Productivity and Economic Development Centre, and Herbs Production and Processing Corporation with Nepal Medicine Ltd and Singhdurbar Baidhyakhana, and Rural Housing Company with Nepal Housing and Finance.
“It is necessary to merge similar types of public entities to consolidate the services and save government expenses, Upadhyaya said, adding that the move will strengthen the PEs too.
The report has further recommended the government for the unification of Janak Education Materials Centre and other printing related entities and formation of independent authority. “National Trading Ltd and Export Promotion centre should also be merged to make one entity,” the report suggested, adding that after merger, the entities should be operated in a PPP model.
Similarly, it has recommended the government to convert Nepal Television and Gorkhapatra Santhan into company to make them more competent.
“Dairy Development Corporation should adopt cooperative model as it is directly related to the farmers,” it said, adding that DDC should adopt cooperative model to enhance farmers’ ownership too.
Political interventions, incompetent human resources, over staffing and corruption are major hindrances for the healthy development of public enterprises, Upadhyay added.
Source: THT
