PRIVATIZE SOME STATE OWNED ENTERPRISES (SOEs)
By Willie Mell
For years, most of the State Owned Enterprises (SOEs) have never been run efficiently and profitably up to standards, though a few have been profitable along the way, like MVIL. Simple reason being, political influence! In the absence of politics they could do better.
The SOEs include KTH, PPL, ANG, PNG Ports Corporation, Post-PNG, NDB, MVIL and PNG Water,
Marape-Steven government is now critical about seeing dividends paid to the State as being the sole shareholder. This sounds too good, because no previous government was very vocal about this, other than Sir Mek's reign.
But, how long will Marape-Steven last? Will the good policy initiatives live beyond their reign if a new government comes on board?
As long as SOEs remain SOEs, nothing will ever change unless they are made to run like private corporations, with efficient systems, strong corporate governance & leadership, S.M.A.R.T missions, purely independent from undue influences, especially from politicians.
Some of the SOEs need to be privatized if the government really wants increased dividend payments and corporate taxes.
SOEs such as Kumul Telikom Holdings, PNG Power, Air Niugini and Post-PNG must be considered for privatisation. The State in this case can be a major shareholder.
Look at BSP and NASFUND! They make huge profits and the State collects a lot from them yearly since they were privatized. Sir Mek is given credit for his best economic wisdom!
Some of these SOEs pay very high salaries to their employees with NIL performances measured in terms of profits, and industry ratings. And they are always subjects of union pressures and vandalism, costing millions of Kina, all added to their already-in-red books.
Some have lost in tens of millions of Kina yearly for far too long due to reveue collection I.T. system flaws. One of it is TELIKOM PNG!
The government needs to not only make some economically calculated decisions, but smart and wisdom-filled decions in these tough times. When things get really tough we gotta be equally tough and smart to sail on.
We know most, if not, all the SOEs have been mortgaged for frequent internal and external borrowings by successive governments hence committed, but there are ways around to manage those commitments.
Pricing and infrastructure expansion to wider PNG can be part of the whole process, among other areas of concerns for Papua New Guineans.
Privatization of non-performing State assets are long overdue and Marape-Steven Government needs to give some considerations to it.
For years, most of the State Owned Enterprises (SOEs) have never been run efficiently and profitably up to standards, though a few have been profitable along the way, like MVIL. Simple reason being, political influence! In the absence of politics they could do better.
The SOEs include KTH, PPL, ANG, PNG Ports Corporation, Post-PNG, NDB, MVIL and PNG Water,
Marape-Steven government is now critical about seeing dividends paid to the State as being the sole shareholder. This sounds too good, because no previous government was very vocal about this, other than Sir Mek's reign.
But, how long will Marape-Steven last? Will the good policy initiatives live beyond their reign if a new government comes on board?
As long as SOEs remain SOEs, nothing will ever change unless they are made to run like private corporations, with efficient systems, strong corporate governance & leadership, S.M.A.R.T missions, purely independent from undue influences, especially from politicians.
Some of the SOEs need to be privatized if the government really wants increased dividend payments and corporate taxes.
SOEs such as Kumul Telikom Holdings, PNG Power, Air Niugini and Post-PNG must be considered for privatisation. The State in this case can be a major shareholder.
Look at BSP and NASFUND! They make huge profits and the State collects a lot from them yearly since they were privatized. Sir Mek is given credit for his best economic wisdom!
Some of these SOEs pay very high salaries to their employees with NIL performances measured in terms of profits, and industry ratings. And they are always subjects of union pressures and vandalism, costing millions of Kina, all added to their already-in-red books.
Some have lost in tens of millions of Kina yearly for far too long due to reveue collection I.T. system flaws. One of it is TELIKOM PNG!
The government needs to not only make some economically calculated decisions, but smart and wisdom-filled decions in these tough times. When things get really tough we gotta be equally tough and smart to sail on.
We know most, if not, all the SOEs have been mortgaged for frequent internal and external borrowings by successive governments hence committed, but there are ways around to manage those commitments.
Pricing and infrastructure expansion to wider PNG can be part of the whole process, among other areas of concerns for Papua New Guineans.
Privatization of non-performing State assets are long overdue and Marape-Steven Government needs to give some considerations to it.
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