Govt to take over 37 ailing companies
Decision prompted by poor management, corruption etc:
Nadira GUNATILLEKE
The government decided to take over 37 companies according to a
collective agreement entered into by the Cabinet and the government,
Cabinet Spokesman and Media Minister Keheliya Rambukwella said.
Minister Keheliya Rambukwella |
Addressing the weekly Cabinet press briefing at the Government
Information Department Auditorium yesterday, Minister Rambukwella said
that the Sri Lankan public owns these 37 companies.
The companies were privatized under the previous regime’s
privatization policy.
But the administration of those companies is poor. Mismanagement,
corruption, malpractices, underutilization and under performances etc
are some of the problems in those companies.
The relevant Bill is to be presented to Parliament but the government
is in no hurry whatsoever to get the Act passed.
According to Minister Rambukwella, the companies taken over by the
government in the past, such as gas, insurance and Mineral Sands
Corporation are doing very well and making profits. It is the same with
estates. Some estate companies which used the fertilizer subsidy etc
properly are doing well while some other estate companies which misused
same are not doing well.
The Opposition has communicated the wrong message to the public in
connection with this task.
Minister Rambukwella pointed out that the profits and loss issue is
decided by the accounting firms and when they say a venture is running
at a loss this idea cannot be changed.
Mihin Lanka and SriLankan airlines are large scale business ventures
aimed at long-term benefits and therefore, they cannot be compared with
other companies. CTB, Railway are public utilities. Railway can make
high profits if tickets can be sold at the exact (higher) price.
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