The Commission for Review of Government Budget Management and Expenditure System headed by lawmaker Narayan Prasad Dahal, has recently submitted a report to the government with various suggestions for reform at the PEs, most of which are poor performers.[break]
The commission´s report has suggested clearly categorizing the PEs into four groups- the ones to be run under government investment, those to be operated under public-private partnership (PPP), those to be handled under a cooperatives concept and ones to be dissolved immediately.
Given the dual role of PEs in their operations, the report has stressed the need to set out clear objectives for PEs to be run under commercial purpose or as a public service. Amid eroding competitiveness, most of the PEs are lagging behind private companies which are pursuing their goals vigorously through massive investments.
To run the ailing PEs under competent management and end political interference, the report has also suggested appointing the chairmen, boards of directors and chief executives on the basis of professional skill, transparency and open competition.
Provision of reward and punishment to the management of PEs on the basis of performance evaluation and introduction of clear standards for evaluating performance so as to ensure transparency and accountability have also been recommended in the report.
The report further suggests that the government stop funding those PEs with commercial objectives, formulate a clear work plan for the management of debts and liabilities at PEs, end the existing practice of adding to the government´s burden by increasing remuneration and incentives for employees beyond the capacity of the PEs concerned, and take immediate action against chief executives who fail to provide audited financial statements.
To check unlimited investment by government in the PEs, guidelines with an explicit basis for government capital investment and loan investment in PEs have also been recommended by the commission.
The report has recommended recovering money as government liabilities from those officials, politicians and others concerned who misused the assets and facilities of PEs.
A high level “Council for Coordination of PEs” has also been suggested to coordinate, monitor and evaluate PEs and bring about effectiveness in the performance of PEs.
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