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| National |
| Government reviews privatisation of state companies |
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by
Joseph Langa, 26 January 2005
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11:12:39
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President Bingu wa Mutharika on Tuesday pledged to give new life to the privatisation process which he admitted has a negative image in the eyes of the public, mainly because of loss of jobs and lack of adequate information on the use of its proceeds.
Mutharika said his government will establish a National Social Security Programme to offer social protection to people affected by privatisation particularly those who lose their jobs.
The President was speaking in Lilongwe on Tuesday where he opened a day-long privatisation strategy conference for cabinet ministers, principal secretaries and other top government officials on the reviewed privatisation programme.
He claimed overstaffing is one problem affecting the performance of state-owned enterprises hence the need to put in place measures that will reduce the shock and suffering among the people that may be affected by privatisation.
“The programme will aim to offer social protection to those groups of employees who are most vulnerable as a result of privatisation,” Mutharika said.
“It will provide various social services, including counselling, financial management/saving advice, retraining and job replacements, and assistance with access to resources to business startups that will create jobs.”
Mutharika also pledged to review the list of companies approved for privatisation and use its proceeds “in a way that maximises the positive benefits of the programme and to make those benefits known to the people”.
“My government shall also endeavour to use the proceeds for socially astute purposes like the building of schools and clinics. It is no secret that one of the often-cited problems of the privatisation process has been the lack of sufficient information on the use of proceeds.”
He said his government has realised the need to review the list of companies “due to passage of time, and also to assertively take into consideration the new paradigm shift to consider public-private partnerships as a form of privatisation”.
According to the President, government will undertake a detailed review of at least 55 enterprises and determine the most optimum privatisation strategy for each of them.
Privatisation Commission chair Sam Kakhobwe told members of the cabinet, PSs and senior government officials at the conference that the commission will need support for a number of key recommendations arising out of the strategic review.
According to one of the papers under discussion, the commission is proposing to review the list of companies to be privatised, to amend the Privatisation Act, to review investment laws and provisions for use and administration of proceeds.
They are also seeking approval for the establishment of a Social Action Programme and new initiatives to enhance Malawian participation in the programme.
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