The Privatization and Corporatization Board (PCB) has initiated a process to address financial inconsistencies within state-owned enterprises (SOEs). An internal review by the PCB revealed that many SOEs lack robust financial policies and procedures, with some companies missing essential guidelines for managing expenditures.
In response, the PCB is drafting a new set of regulations to standardize financial practices across all government-owned companies. The board is collaborating with the heads of financial departments within these enterprises to establish uniform procedures.
The PCB emphasizes the importance of standardized accounting policies and procedures endorsed by company boards. These measures aim to enhance transparency and bolster confidence in financial reporting. The guidelines will cover the recording, reporting, valuation, and disclosure of financial information.
This initiative comes in the wake of previous investigations by the Anti-Corruption Commission (ACC) into cases of financial misconduct within certain SOEs. Disciplinary action has been taken against individuals found negligent in managing these matters. Recently, authorities launched an investigation into irregularities surrounding petty cash disbursements within the Regional Development Corporation (RDC).
These actions by the PCB highlight a commitment to addressing financial shortcomings and mitigating the potential for future irregularities within the state-owned sector.
