Report on the state of Parastatal Companies to be ready in March

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THE Industrial Development Corporation (IDC) board is by March expected to receive a report on the situational analysis being conducted on state -owned enterprises (SOEs) to determine whether to maintain 100 percent Government shareholding, or invite private equity.

IDC acting chief executive officer Mateyo Kaluba said in an exclusive interview last Friday that the situational analysis is meant to understand what need to be fixed.

“We are still getting facts from the SOEs and that is when we will know what options are available. By end of first quarter 2017, a report will be presented to the board for determination on whether to continue with 100 percent government shareholding, invite private sector, or to dispose of completely,” Mr Kaluba said.

He also said IDC will not take over operations of SOEs but will transform the parastatals into viable and profitable entities that must start declaring dividends to the treasury.

“Sometimes, the ministries do not do what they are supposed to, to support the SOEs…As IDC, we are not going to run affairs of the SOEs but we represent the interest of shareholders including issues of governance such as having a competent and effective board [to be appointed by IDC board], so that dividends start flowing to shareholders,” he said.

He, however, said some SOEs are making losses not because of mismanagement but due to inadequate support from line ministries that are structured for policy-making and not operations.

Mr Kaluba said IDC’s interest is to create a platform to spearhead industrialisation for job and wealth creation, and not compete with the private sector.

IDC’s mandate is to play a catalytical role in deepening and supporting Zambia’s industrialisation capacity to promote job creation and domestic wealth formation across key economic sectors.

“When we see appetite of the private sector, we create opportunities that tap into natural resources to create wealth and jobs, and not competing with private sector. IDC’s mandate is to supplement them like we did with the solar projects to be established in Lusaka.

“Of course, IDC will invest some funds to become minority shareholders but the objective is to facilitate private sector investment,” he said.

9 COMMENTS

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    The report will only be credible if it is done by independent people, preferably outsiders or foreign people.

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    Michael, just give them chance. This is a brilliant concept to be supported by all well meaning Zambians.

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    Ba Mateyo Kaluba is at sea and is just a pawn for Robinson Zulu, Lawrence Sikutwa, Felix Mutati and other corrupt individuals. He has been at Ministry of Commerce all this time supervising some of the SOEs that are now under the IDC and are loss making. Can he please outline how the IDC will create jobs as announced by the President (1 million jobs). Can he also outline how the IDC will make loss making SOEs viable and profit making instead of parroting things he has no clue on. The IDC is simply a vehicle for corruption and the opposition should take keen interest in its operations as they is a plan to loot state assets big time under this structure.

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    IDC represents an ancient belief that governments can run companies. History proves that governments, especially our, cannot run companies. All these entities should be privatized and Zambia should run a full capitalistic madate which will help the citizens to improve the laissez-faire work culture where people think that all their problems are created and solved by governments.

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    Even before an official analysis is done, everyone can see that the parastatals are barely functioning, losses and debts all over.

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    Andrew chipwende was dissmissed perhaps for incompetnce, could this be the price you pay for getting a job by bootlicking

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    Let’s fast forward and get to the bit where you tell us how much and what % is being offered to the private sector.

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    IDC represents corruption! Can Mateyo also please provide information on use of dividends that ve been paid so far as well as how much taxes is owed to zra by parastatals under idc. Also how many jobs has idc created to date and what is the composition of the board. The idc should advertise the position of CEO instead of having cadres or bootlickers with no experience of how to run companies managing such entities if parastatals are to profitable. We already know the status of parastatals and the report is just wasting tax payers money. Zambia will not go anywhere if the likes of Mateyo are the ones managing key institutions like idc

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