Once the PCB Act is dissolved, its key elements will be incorporated into the new SOEs Act. Moving forward, the Ministry of Finance will handle all matters related to state-owned companies.
The government has decided to dissolve the Privatization and Corporatization Board (PCB) Act and introduce a new law to regulate state-owned enterprises (SOEs).
According to next years budget, the new legislation will be submitted to Parliament in the first session of next year. This law will aim to establish a governance framework for SOEs, set ownership policies, and define standards for their operation and management, with counsel from financial institutions.
Once the PCB Act is dissolved, its key elements will be incorporated into the new SOEs Act. Moving forward, the Ministry of Finance will handle all matters related to state-owned companies.
The Finance Ministry also plans to implement a new recruitment policy to improve corporate governance, which will include regular audits to minimize waste, optimize financial management, and prevent over hiring of staff. Currently, there are 30 state-owned companies, of which about 40 percent are profitable, with around ten following corporate governance practices.
In response to the wasteful spending on SOEs, the government has allocated MVR 2.1 billion in capital injections for this year to address these issues and reduce corporate expenditure.
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