PEs should adopt PPP model
KATHMANDU:
Public enterprises sub-committee of Public Accounts Committee under Legislature Parliament is recommending the government to adopt Public Private Partnership (PPP) model for the sustainability of public entities.
“Regular political interference has hurt these state-owned institutions,” the sub-committee has concluded, coordinator of the sub-committee Deep Kumar Upadhyay said, adding that political parities has converted the public enterprises as ‘recruiting centre’ of their near and dear ones, apart from political cadres.
Weak political leadership and incompetent manpower in the public enterprises are to be blamed for their poor performance, he added. “It is the matter of shame that most of the public enterprises are incurring huge accumulative losses, when the similar kind of private companies are making enormous profit.”
According to the report, of the total 36 Public Enterprises (PEs), 14 are in loss and 22 PEs are in profit. On one hand government expenses on them is rising and on the other, their performances have not improved as the successive governments have failed to improve the financial health of the institutions due to over politicisation. In the preliminary report, the sub-committee has suggested Herbs Production & Processing Company, Hetauda Cement Industry and Janakpur Cigarette Factory to operate under PPP model to enhance their competency.
The sub-committee is also suggesting the merger of Herbs Production and Processing Company with Singhdurbar Baidhya Khana Bikash Samiti and Nepal Medicine, according to committee members. Similarly, the committee is recommending the company to adopt cooperatives model for the production and processing of required materials.
Apart from PPP model, the sub-committee is also recommending to float shares worth 25 per cent of its paid-up of Hetauda Cement and Janakpur Cigarette to the locals. “The local ownership will ensure the safety and smooth operations of these institutions as one of the hindrance is also the frequent disturbances from the locals,” it said, adding that Jana-kpur Cigarette should increase its paid-up capital also.
Source: THT
Public enterprises sub-committee of Public Accounts Committee under Legislature Parliament is recommending the government to adopt Public Private Partnership (PPP) model for the sustainability of public entities.
“Regular political interference has hurt these state-owned institutions,” the sub-committee has concluded, coordinator of the sub-committee Deep Kumar Upadhyay said, adding that political parities has converted the public enterprises as ‘recruiting centre’ of their near and dear ones, apart from political cadres.
Weak political leadership and incompetent manpower in the public enterprises are to be blamed for their poor performance, he added. “It is the matter of shame that most of the public enterprises are incurring huge accumulative losses, when the similar kind of private companies are making enormous profit.”
According to the report, of the total 36 Public Enterprises (PEs), 14 are in loss and 22 PEs are in profit. On one hand government expenses on them is rising and on the other, their performances have not improved as the successive governments have failed to improve the financial health of the institutions due to over politicisation. In the preliminary report, the sub-committee has suggested Herbs Production & Processing Company, Hetauda Cement Industry and Janakpur Cigarette Factory to operate under PPP model to enhance their competency.
The sub-committee is also suggesting the merger of Herbs Production and Processing Company with Singhdurbar Baidhya Khana Bikash Samiti and Nepal Medicine, according to committee members. Similarly, the committee is recommending the company to adopt cooperatives model for the production and processing of required materials.
Apart from PPP model, the sub-committee is also recommending to float shares worth 25 per cent of its paid-up of Hetauda Cement and Janakpur Cigarette to the locals. “The local ownership will ensure the safety and smooth operations of these institutions as one of the hindrance is also the frequent disturbances from the locals,” it said, adding that Jana-kpur Cigarette should increase its paid-up capital also.
Source: THT
