Most public enterprises do not perform well: PEMEB

The Public Enterprises Monitoring and Evaluation Board (PEMEB) has said that most government-owned companies face several challenges, and do not function well.

PEMEB is an organisation established to ensure that all public enterprises operate in an efficient manner.

According to PEMEB, challenges faced by public enterprises include continuous changes being made to company policies, and to the Board of Directors.

“Such changes result in instability. This has to be corrected. The Board of Directors of a company should not be allowed to change so frequently,” an official of PEMEB said.

He said that only few of the 68 public enterprises are profitable, and one reason for this is that the companies are not able to compete in a business environment due to existing laws.

He highlighted that efforts are underway to abolish and merge several public enterprises.