THE Government is evaluating all the remaining paratstal companies facing operational challenges with a view to privatise them, Secretary to the Treasury Likolo Ndalamei has said.
Mr Ndalamei told a parliamentary watchdog committee on public accounts chaired by Mbabala Member of Parliament (MP) Emmanuel Hachipuka (UPND) that it would not be prudent for the Government to continue recapitalising operations of struggling parastatal companies.
He said this in response to a question by Mr Hachipuka, who asked what usually compelled the Government to privatise most parastatal companies.
Mr Ndalamei said the Government pushed to privatise to save huge billions of money usually lost through recapitalisation.
“We are seriously examining the process of privatising remaining parastatal companies, especially loss-making ones.
“We would rather spend K40 billion to erect new two high schools instead of pouring this money into a ‘bottomless pit’ in the name of recapitalising struggling parastatal companies,” he said.
On whether the Government had plans to revive operations of the defunct Nitrogen Chemicals of Zambia (NCZ), Mr Ndalamei said the fertiliser making company was one of those struggling to remain afloat.
“I am glad to state here that some local and foreign investors have shown interest in taking over operations of NCZ and the Ministry of Agriculture and Cooperatives is handling this matter.
“We hope that soon rather than later, these developments shall take root to make sure the plant is effective in boosting the agriculture sector in Zambia,” he said.
He said the Government was working on a long-term solution for NCZ and leaving the company to operate under the private sector would enable it remain viable for the good of Zambia.
On the terminal benefits owed to former University of Zambia (UNZA) workers, Mr Ndalamei said the amounts were too huge for the Government to settle owing to the conditions of service that the former employees enjoyed.
The Government had since constituted a committee that is meeting with UNZA management to see how the issue could be resolved.
[Times of Zambia]
If someone is willing to invest in what you call a bottomless pit, then they must have seen some serious potential that you are too blind to see.
The problem with our parastatals is management. The boards and top management are political appointees who dont know their work hence leading 2 all these accrued obligations
Change managements and boards and reduce political interference and the parastatals will be very profitable. Look at ZCAS, that is a classic example! NCZ can equally be profitable if Govt doesnt get their fertilizer 4 campaign distribution
majority control is 51%, govet can sell 51% majority stake and float the rest of the shares on the stock exchange. they need to abandon this system of selling off 75% stake to 1 foreign bidder
Good Plan but it will all end up with Bad execution. Favouring foreigners or sold to foreign friends of RB’s children. Atase.
Good idea when done in good faith with terms and good working service conditions for zambian workers and the country at large.
this govt will end up up selling Victoria Falls..they are upt2 no good..
#1 I totally agree with u as the major problem is unnecessary govt interference. Appointing managers who turn out to be puppets and bootlickers and cant use their heads to think and strategize. We need prudent management and selling these companies will leave this country toothless. Govt get your campaign money from somewhere else and not from the parastatal companies.
The panacea to parastatal problems is implimenting proper management systems! These ministers are full of shit… behaving like they are not learned. All they are doing is creating an opportunity for selling so that they get kickbacks…its all about corruption. Kafupi tried privatisation but where are we?? There is no complete market economy. Government should have a stake in the economy!
Fire the management, and try to engage or hire managers from a developed country on clearly defined terms and conditions – just as we have done with football. Don’t sell the companies.
# 1 – 8 I agree with all your sentiments. We cannot sale all parastatals by pretending that they are not viable. First thing to ask ourselves is, why would the buyer be interested to acquire these parastatals unless they have inherent viability potential.
Do not sale NCZ, concession its’ management to a foreign management consortium who will not give you fertilizer for your campaigns for free. The new management will also ensure they finance the plant to produce and distribute the fertilizer rather than government paying money in advance to Niombo and Omnia to import fertilizer, while they receive kick backs. We are not going to allow you to enslave us through this aimless privatisation! Why the hurry to privatise all parastatals? Is this Chilubas advise as consultant?
#5-9 let be objective here. where do u think will get a politician who will appoint a perfect management to run parastatals? this institutions are just galloping our tax and in the end we the people are loosers. in which country have you see parastatals are runn well? even in well developed countries parastatals are rubbish. do let do the right thing by excusing government from doing business will our money. certainly Likolo Ndalamei’s thinking will be more beneficial.
Likolo Ndalamei is very disappointing when he says UNZA retirees cannot be paid because the bill is too big. u are sick.pay people’s money.Why do u panish them
Zambia State Insurance, Napsa are classical examples of how sound management can turn around a company and make it profitable. The Government must think of getting people like Irene Muyenga to sit as a Board Member on some of these failing companies and show them how to manage them.Before she took over at ZISC it was a mess but she had single-handed turned it into a profit machine..Let Irene be sent to ZNBS, National Airports, NCZ or even State Lottery to show her prowess…we need sound managers not infestors
I am not too sure that Irene Muyenga single handedly turned ZISC around. Take some time to delve into ZSIC solvency. You will be extremely surprised that its not doing as well as its touted to be doing. They cannot even pay employees who opted to go on vouluntary retirement.
i think we should just come to accept that government should not be running businesses. its very costly on the tax payers.