The Privatization and Corporatization Board (PCB) has revised its advisory to state-owned enterprises (SOEs), cautioning them against initiating new projects until the incoming administration takes over.
PCB initially issued an advisory directing companies not to undertake any new projects or any new activities requiring significant expenditure, with normal business transactions excluded from this provision.
However, the latest revision states that companies may carry out projects which had already been negotiated with contractors and suppliers, in addition to extensions of ongoing projects. Consequently, SOEs now have the flexibility to better manage projects that have already been announced and those in which the tender stage has already been completed – these should be projects that are in line with government policy and provide clear benefits to the people, PCB highlighted.
PCB’s previous advice to SOEs remains unchanged despite this recent revision and clarification. The SOE regulator had previously advised companies to, within the transition period; refrain from taking on new projects or new activities requiring substantial expenditure; avoid changes to rules, regulations or decisions that may affect the company’s revenue; avoid changes to the manner in which salaries and allowances are paid; avoid changes to employee rules and refrain from changing the company structure.
SOEs were advised to offer the President-elect’s transition teams full cooperation and easy access to documents and information.