Government prepares regulations for privatisation of state-owned companies

The government is working on regulations for privatisation and other changes within state-owned companies. A report from the previous government is being used as the basis. President Jennifer Geerlings-Simons announced this on Wednesday during her annual address. According to the head of state, state-owned companies form an important part of the economy. Some have a strategic function and depend on government subsidies, while others are expected to generate revenue for the state. Not all state-owned companies fulfil the purpose for which they were established.

The government has therefore begun an evaluation based on the report issued under the previous government. Components that align with the policy insights of the current government will be implemented. Where necessary, the report will be adjusted. “Regulations will be drafted for privatisation and other changes in state-owned companies,” the president said. She stressed that this process must be as transparent as possible.

Criticism of loss-making companies

Earlier, DNA members Poetini Atompai and Steven Reyme asked the government to dispose of loss-making state-owned companies. According to Atompai, the state has around 160 companies under its management, a large proportion of which are loss-making. He stated that the government has to spend millions each month on subsidies for these enterprises. “It is repeatedly said that there is no money in the country, yet millions are being subsidised to state-owned companies that generate nothing,” Atompai said.

The parliamentarian also criticised the remuneration of members of the management boards and supervisory boards of these companies. According to him, they sometimes earn thousands of US dollars, while the companies generate no revenue for the state. “This cannot continue, and we must change this system,” Atompai said.

The previous government already had plans to privatise around thirty parastatal companies and government institutions. Those plans met with strong criticism from the opposition at the time and were ultimately put on hold.