Government completes review of SOE role

Business News

SOEs whose mandate is social responsibility will be under the finance ministry while those not having a social mandate will be under DHI

The Ministry of Finance (MoF) has completed review of the role of State Owned Enterprises (SOEs). The task force team has reviewed the functions and role of SOEs in the country.

Since then, MoF has come up with the Corporate Governance Guidelines for state enterprise 2019.

There are 16 SOEs registered with MoF.

During the Meet the Press on Friday, finance minister Namgay Tshering said that the findings they reviewed were not much different or deviated from what they actually anticipated.

However, according to Lyonpo, the review has not yet been presented to the cabinet though they did discuss during their every Friday Densa meet.

“There were increasing allegations from the private sector that with the increasing number of SOEs it is basically covering the business opportunity in the private sector in the country,” said the minister.

However, Lyonpo mentioned that the findings revealed it was not true. “We are anticipating progress on bringing the private sector on board and engaging them so that they will also be part of business,” Lyonpo added.

Lyonpo also said that SOEs under MoF has dual mandate and one mandate of SOEs is to make money and other mandate is to have social responsibility like how best they can update the economy and business opportunity in the country.

“The findings have also proven that some SOEs are not sustainable in the long run while some SOEs are running profitably.”

Lyonpo said that the findings will be presented to the cabinet and be finalized.

According to Lyonpo, the ministry has requested Druk Holding and Investments (DHI) chairman to build up what is missing in the SOEs that are owned by the government and promote a good governance culture that is being practiced by SOEs under DHI.

Lyonpo mentioned that SOEs whose mandate is social responsibility will be under the finance ministry while those not having a social mandate will be under DHI.

Dechen Dolkar from Thimphu

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