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The
emphasis is on improving the efficiency of all Parastatal enterprises,
whether retained or divested. The Government has decided to distance
itself from direct involvement in business, and thus to divest most of its
interests whether in loss making or in profit making Parastatal
enterprises. All commercial Parastatal enterprises will become available
for both foreign and local participation using suitable methods of
divestiture including liquidation where necessary.
Primary
Objectives:
The
following are the primary objectives which have been defined in the
Government’s policy statement on Parastatal Sector Reform:
-
Improve
the operational efficiency of enterprises that are currently in the
Parastatal sector, and their contribution to the national economy;
-
Reduce
the burden of Parastatal enterprises on the Government budget;
-
Expand
the role of the private sector in the economy, permitting the
Government to concentrate public resources on its role as provider of
basic public services, including health, education and social
infrastructure; and
-
Encourage
wider participation by the people in the ownership and management of
business.
In
pursuing these primary objectives the CHC aims to:
-
Transform,
through comercialisation, restructuring and divestiture, the
performance of most significant enterprises in the Parastatal Sector;
and
-
Ensure
liquidation of all non-viable Parastatal enterprises as soon as
possible.
Secondary
Objectives:
In
so far as their pursuit is consistent with the primary objectives, the
CHC intends to ensure that divestiture meets the following secondary
objectives:
-
to
create a more market-oriented economy;
-
to
secure enhanced assess to foreign markets, to capital and to
technology;
-
to
promote the development of the capital market; and
-
to
preserve the goal of self-reliance.
Likewise
the process of comercialisation and restructuring will be designed so as
to ensure that those Parastatals that remain for the time being in the
public sector:
-
are
responsive to markets, cost-conscious and profit oriented;
-
act
as business entities without being required to carry out non
commercial;
-
activities
except when explicitly compensated by Government;
-
do
not encounter political interference in their operations including the
banks;
-
are
guided by supervisory agencies to the minimum consistent with pursuit
of consumers’ interests;
-
have
boards and managements that are autonomous and accountable; and
-
have
effective performance monitoring systems.
Given
these objectives the Parastatal sector reform programme is expected to:
-
increase
private sector savings and investment (both local and foreign) in all
sectors of the economy which, in turn, will stimulate sustainable
employment opportunities;
-
increase
tax collection from businesses that become more profitable after
privatisation;
-
create
an environment that will encourage private investment and the
emergence of indigenous entrepreneurs; and
-
improve
the quality of delivery of utility and other public services.
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