SOEs need to report to public on timely basis, says Duma

By MARK HAIHUIE
STATE-owned enterprises need to provide timely financial records to the public, says Minister for Public Enterprises and State Investments William Duma.
He told The National that private auditing firms may need to take over from the Office of the Auditor-General.
Duma was responding to questions on why there was lack of information on the performance of SOEs.
“It is long overdue and all of our SOEs have become frustrated because of our own hold-ups,” Duma said.
“Under the existing requirements, the audits have to be signed off by the auditor-general.
“Invariably you get reports a year later. The SOE are companies and not Government departments.
“It would be preferable that their books are kept up to date, but the requirements are that it has to go through the auditor-general.
“We have had that problem.
“If it means releasing us from this and empowering us to be able to engage private accounting firms, we would like it that way.”
Kumul Consolidated Holdings managing director Darren Young, when explaining initiatives being undertaken to have more financial transparency, said some SOEs were being audited by private firms.
“A number of SOEs are already being audited by companies like Price Waterhouse Coopers and other major auditor firms,” Duma said. “They are public companies so these figures will be available in the public offices.
“We have embarked on a more-robust quarterly system with the SOEs to understand what is going well and what isn’t on their strategic objectives.
“We report to the National Executive Council on an annual and half-year basis. We are working around more transparency around the numbers and more scrutiny from the shareholders.
“We will be very shortly releasing an annual report. We are finalising that up at the moment and all the SOE results should be presented like any other company.
“I think in the telecommunications sector we have got a couple to tidy up. We plan to bring those up to speed quickly.
“All of the boards have been charged to heighten their awareness around the audits as up to date as possible.”