GOVT URGED TO RUN STATE OWNED ENTERPRISES IN A SIMILAR MANNER THAT PRIVATE ENTERPRISES RUN THEIR COMPANIES

Economist Yusuf Dodia has urged government to run state owned enterprises in a similar manner that private enterprises run their companies.

The report of the Auditor General on the accounts of parastatal bodies and other statutory institutions for the financial year ended 31 December 2022 has revealed that 13 subsidiary companies incurred losses amounting to over K746 million and over K1 million in 2021 and 2022 respectively.

Reacting to this development in an interview with Phoenix News, Mr. Dodia notes that state owned enterprises are much about bureaucracy and accountability being monitored as opposed to profit making like private companies.

He says the disconnect starts from the way they are structured, adding that workers do not feel that they are accountable to an owner because they are public owned.

Meanwhile, Economist Mwiya Ikolongo has attributed the losses to operational costs and an under-performing economy as there has been a slowdown domestically, regionally and globally while the business environment is not permitting expansion and profit making.