A union boss has urged government not to privatise Plant and Vehicle Hire Organisation (PVHO), favouring de-link it from the Ministry of Transport and Public works to let it operate autonomously.
Ken Williams Mhango, president of the Malawi Congress of Trade Unions (MCTU), said on Thursday the parastatal has good equipment — currently being underutilised — which can boost state revenue.
Mhango added that since the organisation has branches in all but few of the 28 districts, it can create thousands of jobs.
He cited the Malawi Revenue Authority (MRA) as an agency that is doing well after its independence from the Ministry of Finance and has, apart from Immigration and Traffic Departments, become the Treasury’s life boat.
Mhango suggested that Teveta, an authority under the Ministry of Labour formed by parliament to train people in technical, vocational, entrepreneurial skills should take over and run the parastatal as it has the know-how and the said autonomy.
Government is in the process of privatising PVHO, having got tired of bailing out the entity through subvention.
The parastatal is also failing to collect K14 million it is owed by the state and private organisations.
Capital Hill, the seat of government, believes that clients fail to service debts to PVHO because it is state-owned.
Meanwhile, Mhango has heaped praise on the privatisation programme, saying it has been successful in job creation, revamping and revitalisation of collapsing state entities and boosting government revenue through tax.
He, however, accused some new owners of failing to fulfil certain conditions like improving workers’ welfare and investing in the entities.
“Some of them just care about making profits without regard for their employees,” said Mhango.
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