Kavanamur: State entities scrutinised

By DALE LUMA
KUMUL Consolidated Holdings (KCH) chairman David Kavanamur says they have a handle on the current status of State-owned enterprises (SOEs) financials and debt structure.
Kavanamur said this when providing The National with an update of SOE reforms including the status of SOEs that had struggled to be profitable over the last 20 years.
“We feel that we are getting a good handle on the current status of SOEs’ financials and debt structures with a view to restructure debt and recapitalising the business,” he said.
“We have completed our five-year SOE strategy which will go to Cabinet before release.
“As pointed out, the status of SOEs is well known for the last 20 years and there is no surprise.
“The only surprise will come when we turn them around and we have just started on that journey.”
KCH managing director Isikeli Taureka previously told The National that the total assets of SOEs was around K6 billon but only about K65 million was paid as dividend annually and that SOE reforms were being carried out to change this situation.
Taureka said the Government was looking to sell its companies that were not making money.
He said the National Executive Council (NEC) had approved the sale of non-core state owned entities not generating any revenue for the state.
NEC had approved the reform supported by the Asian Development Bank with a loan of K500 million over three years, according to Taureka.
The NEC decision was to have a SOE reform and debt-free financing.
“The NEC decisions allow us to go through the reform, selection process, better boards, better management selection process, returning to a sound financial footing and delivering services,” Taureka said.