PEs demand Rs 150m to celebrate Dashain

KATHMANDU:

As the festival of Dashain is approaching, many state-owned enterprises, with almost zero productivity, have started thronging the Ministry of

Finance demanding millions of rupees to cover salary expenses and allowances of their staff members.

So far, seven public enterprises (PEs), which have accumulated cumulative losses ranging from around Rs six million to close to Rs 700 million as of fiscal year 2011-12, have formally submitted their requests for over Rs 150 million at the ministry.

Of these firms, the highest sum has been demanded by the Cultural Corporation.

The corporation — also known as Rastriya Naach Ghar Sanskritik Sansthan — which has leased its land in Jamal to a swanky mall, has asked government to arrange Rs 80 million to cover remuneration of staff members during Dashain. The public enterprise, which has booked a cumulative loss of Rs 46.79 million, employs around 78 people.

“Although the company should be earning millions of rupees per year from the

land it has leased, it is still

asking the government for funds, as it has not been able to recover the rent,” a high-ranking official of the Finance

Ministry said.

Another company that is seeking funds from the government is Nepal Drugs Ltd.

The state-owned pharmaceutical company shut down its operation around four years ago after the Department of Drugs Administration denied renewing its licence citing the company failed to meet minimum production standard set by the drugs regulator. However, 269 staff members at the company still have not been laid off and the government is spending around Rs four million per month on them to meet their salary expenses and other allowances.

Now, as the festive season is nearing, the company, which has amassed a cumulative loss of Rs 692.35 million, is demanding Rs 38.2 million from the government.

Likewise, Nepal Railway Company is demanding around Rs 25 million from the government. The company, which runs an obsolete train in Janakpur area, employs around 162 people and has accumulated a cumulative loss of Rs 37.6 million.

Another company that is demanding funds to cover remuneration of staff during Dashain is National Productivity and Economic Development Centre. Although the state-owned enterprise was established to promote industrial development in the country, it has so far made insignificant contribution in this regard. Yet, it currently employs 25 people and has so far booked a cumulative loss of Rs 5.71 million.

Similarly, Nepal Metal Company, National Trading Limited, and Herbs Production and Processing Company have demanded Rs 1.7 million, Rs one million and Rs 270,000, respectively, from the government to be able to extend salary and allowances to their staff members before the start of the Dashain festival.

“If the government continues to give away taxpayers’ money to companies that have contributed very little to industrial and economic development of the country, it may start incurring huge fiscal deficits. This budget drain has to stop,” the Finance Ministry official said.

Source: THT