There is a lack of transparency surrounding the State Owned Enterprise (SOE) Bill, initially slated for enactment in May. “The Bill was supposed to be enacted in May 2024, but nothing has come of it.”
“It has been presented to the parliament, but we do not know why no action has been taken, and the public does not know much about it,” said Research Consultant to Advocata Institute, Rehana Thowfeek at the Advocata Institute hosted event titled “Unlocking Economic Potential: Why Debt Restructuring Alone Won’t Suffice Without SOE Reforms” at the BMICH recently.
She said the public has a right to be informed about the progress and implications of the Bill, which aims to set restrictions on the type of Government debt allocated to SOEs.
Thowfeek said the masking of financials appears to make these entities profitable, citing instances of debt being passed onto tax payers. She stressed that true economic relief for consumers, especially in essential services such electricity and fuel, can only be achieved through better management and efficiency within SOEs.
Thowfeek said that though there was a decision taken that SOEs that come under the holding company should submit annual reports like companies attached to the Stock Exchange it has not been done by the identified 52 SOEs even after seven months have passed in 2024.
There was also a rule that only qualified people should be appointed to Boards of these SOEs and this too is faulted. It’s not a decision that should be taken by a Minister or a few individuals.”
“Simply because the country has successfully engaged in debt resurrecting this does not give a breathing space SOEs to continue in the same manner that they can continue in the same loss making manner.
“If the SOEs are not reformed the Government will again have financial pressure when it comes to paying back debt after some time. Hence the Government needs revenue by restructuring SOEs,” she said.
Thowfeek said that though some announce that SOEs make profits then the public should be also given price reductions by these SOEs.
