PM hands deadline to ailing firms

Seven ailing state enterprises have been given a March deadline

 to propose their revised rehabilitation plans after they failed to

 meet all the requirements and targets set by the government

 last year.

The State Enterprises Policy Committee (SEPC), chaired by

 Prime Minister Prayut Chan-o-cha, met Monday to evaluate

 the seven state enterprises' one-year performance and

 implementation of the 2015 rehabilitation plans.

 The state enterprises include the embattled Thai Airways

 International (THAI), the State Railway of Thailand (SRT),

Bangkok Mass Transit Authority (BMTA), the Small and

Medium Enterprise Development Bank of Thailand (SME Bank),

 the Islamic Bank of Thailand, TOT Plc and CAT Telecom.

"The committee has seen some progress and improvement since

 the implementation of the plans but some key issues have not

been resolved and some requirements have not been met,"

said Ekniti Nitithanprapas, director of the State Enterprises

Policy Office.

They are required to revise the plans to make them more

concrete and propose them to the committee by March, he said.


Gen Prayut instructed the committee to stop giving "yellow card"

 and "red card" warnings to executives of state enterprises who

 failed to improve their organisations' standings as these measures

may put too much pressure on them.

 Those who receive red cards are transferred from their posts.

The committee then resolved to give scores of "outstanding",

 "good", "fair" and "should improve" to executives instead.

 Mr Ekniti gave details of each state enterprise's evaluation.

Last year, THAI failed to meet its target of cost reduction.

The company could only cut expenses by 7.26 billion baht,

 compared to the 10-billion-baht target.

The national flag carrier is required to propose a plan to reduce

sales agents and increase online ticket sales.

The company is also required to delay the purchase of

 unnecessary aircraft.

The debt-ridden SRT is required to make more clear in its plan

 the aim to increase the role of the private sector in its investment

 projects to reduce the state's financial burden.

The agency has been ordered to present its sources of funding

 whenever it seeks cabinet approval for investment projects.

The committee reiterated the need for the SRT to find private

 investors for the development of its Red Line and the extension

 of the Airport Rail Link to Don Mueang Airport.

 

Mr Ekniti said the SRT has made substantial progress in

dual-track development and has already opened bids for

 two projects.

As for the BMTA, he said the agency is required to revise a plan

 to purchase new buses and to accelerate the bidding for 489

 NGV-fuelled buses by March.

The loss-ridden Islamic Bank of Thailand is required to speed

 up its plan to seek business partners and reduce

non-performing loans.

The SME Bank is also required to reduce its existing 20-billion

-baht non-performing loans.

 Meanwhile, TOT and CAT are required to make their roles

 clearer in the telecom industry and their business direction

 amid mounting competition.

 Mr Ekniti applauded the TOT for its successful reduction of

expenses by 10 billion baht last year, much higher than the

 target of 6.87 billion baht.

 Meanwhile, the SEPC approved in principle a draft bill for

state enterprise supervision paving the way for the

 establishment of the "superholding" organisation to oversee

 potential state enterprises.

 

 Prasarn Trairatvorakul, chairman of SRPC's subcommittee

overseeing the establishment of the National State Enterprise

 Corporation, known as the superholding corporation, said

 the corporation would be 100% under the Finance Ministry.

 It will act as a shareholder of 12 state enterprises which

 have been corporatised such as the Airports of Thailand,

PTT Plc and MCOT Plc, said Mr Prasarn, the former

 Bank of Thailand governor.

 Under the bill, the 15-member corporation board consists

of five people from the government, five civil servants and

 five experts.

"State enterprises are national assets so it is impossible for the

 government to be totally uninvolved in them but we will

find some mechanisms for checks and balances," he said.

However, the bill required accountability of the government

if it caused any damage due to any intervention.

Also on Monday, Prime Minister Prayut insisted that the draft

 bill is aimed at reforming state enterprises to boost their

efficiency,not to privatise them.

The bill seeks to improve performance of the boards of more

 than 56 state enterprises. Of these, seven are in urgent need

of revamping, such as the SRT.

 These state enterprises have  never before been reformed and

 their problems have remained unsolved, he said.

Gen Prayut also said some problems cannot be solved through

punishment or dismissals, adding that some of the existing

members of state enterprise boards should be given a chance.

Meanwhile, a source at THAI said it is considering resuming

Bangkok-Seoul-Los Angeles flights, halted on Oct 26 last year,

 following the global oil price slump.

 

News,General ,Bangkok Post,19 January 2016.

 

Agree to give scores of "outstanding", "good", "fair" and

 "should improve" to executives instead of  give red card

 and yellow card to them because it make too much pressure

 on them .

 

And glad to hear that the draft bill is aimed at reforming state

 

enterprises to boost their efficiency,not to privatise them.

 

For I am disagree with privatise the state enterprise because

these units involve with the service to all people in the country

if they operate as the company the price will be high more

than as state enterprise in my believe.

 

Sincerely Yours.