PCB initiates financial consolidation for state-owned companies

The Privatization and Corporatization Board (PCB) has initiated the process of consolidating the financial arrangements of all state-owned companies.

According to PCB, the board has observed that the financial policies and procedures of SOEs have not been properly established, and some do not have the necessary procedures set in place to be followed when making expenses.

PCB said that it was working on consolidating the financial regulations and procedures to be followed by companies. To standardize these regulations, PCB is working with the heads of the financial departments of the companies.

PCB said that in order to create greater transparency and confidence in reporting financial information, it is important that standard accounting policies and procedures are developed in each company and endorsed by the boards of the companies. Policies should be set in place, including guidelines on recording, reporting, pricing, and disclosure of financial transactions along with financial statements.

The ACC has also investigated cases of some companies in the past for corruption in financial transactions and actions have also been taken against employees found negligent in such matters. Late last year, the authorities had also initiated an investigation against Road Development Corporation (RDC) for alleged misappropriation of petty cash.