FE Report (February 02, 2011)
Finance Minister AMA Muhith has reprimanded the ministries concerned for their failure to offload shares of the state-owned enterprises (SoEs) under their control defying the directives from the Prime Minister, a top official in the Ministry of Finance (MoF) said.
Muhith in an official note sent early this week made a few harsh observations about the defaulting ministries.
The MoF has convened a meeting on February, 10 to review the status of SoEs' share offloading.
The MoF Monday last sent letters to different ministries including ministries of power, energy and mineral resources and civil aviation criticising them for ignoring the decision coming from the highest authority of the government on offloading the shares of the state-owned firms.
The letter, a copy of which is available with the FE, contains the observation made by the finance minister.
Earlier, Hasina in November, 2010 approved a proposal of the finance ministry to offload up to 49 per cent stakes the government holds in 27 SoEs by December of the same year.
'The deadline (to offload the shares of SoEs) was set after obtaining approval from Prime Minister. No ministry can change the deadline. So, energy and mineral resources division did not act rightfully,' the letter quoted Muhith, as saying.
Of the 27 enterprises, nine fall under the power and energy ministry, eight under the industries ministry, four under the post and telecommunication ministry, and three under the civil aviation and tourism ministry. The rest three are under the communications, shipping and health ministries.
Of the 27 SoEs, eight are already listed on the capital market. However, three (Padma Oil, Atlas Bangladesh and Usmania Glass) were asked not to offload their shares further as 49 per cent of their stakes are already held by general investors.
The remaining five state firms were asked to offload up to 49 per cent of their shares.
However, barring the Rupali Bank Ltd none of the SoEs slated for listing has so far implemented the decision of the government.
Officials in the MoF said energy and mineral resources division had informed them about the decision to extend the deadline for offloading the shares of their three firms to March 31, 2011. The division had taken decision on its own and did not bother to have consultation with the finance ministry, they said.
The four SoEs are -- Jamuna Oil, Meghna Petroleum and Eastern Lubricants.
Muhith in an official note sent early this week made a few harsh observations about the defaulting ministries.
The MoF has convened a meeting on February, 10 to review the status of SoEs' share offloading.
The MoF Monday last sent letters to different ministries including ministries of power, energy and mineral resources and civil aviation criticising them for ignoring the decision coming from the highest authority of the government on offloading the shares of the state-owned firms.
The letter, a copy of which is available with the FE, contains the observation made by the finance minister.
Earlier, Hasina in November, 2010 approved a proposal of the finance ministry to offload up to 49 per cent stakes the government holds in 27 SoEs by December of the same year.
'The deadline (to offload the shares of SoEs) was set after obtaining approval from Prime Minister. No ministry can change the deadline. So, energy and mineral resources division did not act rightfully,' the letter quoted Muhith, as saying.
Of the 27 enterprises, nine fall under the power and energy ministry, eight under the industries ministry, four under the post and telecommunication ministry, and three under the civil aviation and tourism ministry. The rest three are under the communications, shipping and health ministries.
Of the 27 SoEs, eight are already listed on the capital market. However, three (Padma Oil, Atlas Bangladesh and Usmania Glass) were asked not to offload their shares further as 49 per cent of their stakes are already held by general investors.
The remaining five state firms were asked to offload up to 49 per cent of their shares.
However, barring the Rupali Bank Ltd none of the SoEs slated for listing has so far implemented the decision of the government.
Officials in the MoF said energy and mineral resources division had informed them about the decision to extend the deadline for offloading the shares of their three firms to March 31, 2011. The division had taken decision on its own and did not bother to have consultation with the finance ministry, they said.
The four SoEs are -- Jamuna Oil, Meghna Petroleum and Eastern Lubricants.
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