MoF seeks ministries’ proposals for PEs reform
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KATHMANDU, OCT 24 -
The Ministry of Finance (MoF) has asked all other ministries to submit detailed proposals for reforms in public enterprises (PEs) under them.
Two months ago, the parliamentary Public Accounts Committee (PAC) had recommended measures for the reforms, including liquidation of three defunct enterprises, merger of nine such institutions to create four, and operate some of them under public-private partnership.
“We have dispatched letters to all the ministries, asking them to submit detailed plans on how they would implement the PAC instructions,” said Ram Sharan Pudasaini, joint secretary at MoF.
According to Pudasaini, MoF will hold discussions with ministries concerned on their proposals and decide whether their plans should be passed through the privatisation cell headed by the finance minister or forward to the Cabinet for decision.
The PAC has suggested liquidation of National Construction Company, Nepal Engineering Consultancy Service Centre and Timber Corporation of Nepal. It has also asked the government to amalgamate Janak Education Materials Centre and other printing related entities to create an independent authority. Other PAC suggestions include unification of National Trading Limited and Export Promotion centre and the merged entity be run under PPP model.
According to the PAC report, the Dairy Development Corporation should adopt a cooperative model as it is directly related to farmers. “It is necessary for DDC to adopt cooperative model to give farmers a sense of ownership,” states the PAC report. The report has also suggested running 11 PEs, including Nepal Telecom, Rastriya Banijya Bank and Nepal Oil Corporation, under PPP model.
Meanwhile, PEs that the report suggests to be operated by the government itself include Nepal Transit and Warehouse Management Limited, Nepal Civil Aviation Authority, Cultural Corporation, Nepal Electricity Authority, Deposit and Credit Guarantee Corporation, Nepal Stock Exchange, Citizen Investment Trust and Nepal Food Corporation.
The PAC report, however, has not recommended privatisation of any PEs. Lawmaker Rabindra Adhikari, a member of the PE sub-committee at PAC, said they opted for other models than of privatization as evidences showed that privatisation was not the solution of PEs’ problems.
He said many PEs are in urgent need of restructuring and reengineering. The main problems of PEs are political appointments, over staffing and poor management and infrastructure.
PAC Recommendations
LIQUIDATION
l National Construction Company
l Nepal Engineering Consultancy Service
l Timber Corporation of Nepal
MERGER
l Krisi Samagri Company with National Seed Company
l Industrial Estate Management Ltd with
National Productivity & Economic Development Centre
l Herbs Production and Processing Corporation with
Nepal Medicine Ltd and Singhdurbar Baidhyakhana
l Rural Housing Company with Nepal Housing & Finance
PPP MODEL
l Nepal Telecom
l Rastriya Banijya Bank
l Nepal Oil Corporation
l Hetauda Cement
l Udayapur Cement
l Agriculture Development Bank
l Rastriya Beema Sansthan
l Nepal Industrial Development Corporation
l Nepal Orient Magnasite
l Nepal Airlines Corporation
l Janakpur Cigarette Factory
Posted on: 2011-10-24 08:51
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