“There is no need to give continuity to those PEs which are making huge losses and losing competitive power every year,” said Pandey.
Speaking at an interaction on Sunday with chief executives of state-owned enterprises, Pandey added that the ailing PEs were losing faith of the people due to their deteriorating financial health. “We have no option but to liquidate sick PEs to boost faith of people in state-run enterprises,” said Pandey.
Urging the executives to work for better performance and justify the need of the PEs they are heading, Pandey said there is no alternative to closing down the enterprises that are running on losses and lagging behind the private sector in terms of competition.
Pandey also said the government is going to adopt a policy of ´hire-and-fire´ to ensure better performance of employees in PEs. “If we failed to implement the hire-and-fire policy, weak performing PEs will continue to become a financial burden to the government,” added Pandey.
Responding to the complaints from PEs´ executives about lengthy bureaucratic procedure in procurement, he assured them of necessary amendment to laws to ease procurement process. He also expressed concerns over the loss of Rs 12 billion in Nepal Electricity Corporation (NEA) despite its monopoly.
He also gave direction to the PEs´ chiefs to maintain proper data on land owned by them so as to prevent the registration of their land in the name of individuals.
Kesab Acharya, senior economic advisor to the Finance Ministry, suggested categorizing PEs into those completing auditing in time and those failing to do so.
Acharya also emphasized the need to impart training on newly appointed chiefs of PEs on their responsibilities and accountability.
Krishna Hari Banskota, revenue secretary, also directed the PE heads to conduct auditing on time, keep proper record of capital, and share information about their investment and liabilities in updated manner. Tanka Mani Sharma, joint secretary at the ministry expressed dissatisfaction over the delay by PEs to submit their necessary information to the ministry on time.
Deputy Auditor General Ramesh Satyal informed that 10 PEs haven´t settled their dues for last 17 years. He also suggested the government to settling the arrears of the PEs.
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