Finance Ministry identifies SOE weaknesses, suggest remedies

Business Report :

The finance ministry recently came up with a report on 10 state-owned enterprises (SOEs) and autonomous entities, rating their performances and gauging weaknesses saying the Bangladesh Overseas Employees and Services Ltd (BOESL) and Bangladesh Shipping Corporation were found to be highest scorers in the study.
Bangladesh Forest Industries Development Corporation (BFIDC) got the lowest 2.28 mark in a scale of 4 while BOESL scored the highest 3.63 marks in the finance division evaluation conducted under a massive initiative called Strengthening Public Financial Management Programme to Enable Service Delivery (SPFMS), engaging experts in their respective fields. The independent evaluation process dubbed as Strengthening of State-owned Enterprises Governance Scheme was carried out for 2021-2022 fiscal under the SPFMS, having eight schemes with a major objective to streamline their financial and operational management. According to the rating the Bridges Authority secured the third position getting 3.44 marks followed by Chattogram Port Authority scoring 3.20.
In terms of scores Khulna Development Authority (KDA), Bangladesh Petroleum Corporation (BPC), Bangladesh Small and Cottage Industries Corporation (BSCIC), Bangladesh Power Development Board (BPDB) and Bangladesh Parjatan Corporation followed them all getting scores below 3. In terms of business strategy and institutional governance, BSCIC got the lowest mark while the PBDC is in most dilapidated state as far as financial indicator is concerned. BPC was found to be most inefficient SOE in terms of governance.
Officials said the evaluation was carried out on the basis of four indexes – business strategy, operational efficiency, financial indicator and institutional good governance while some of these are commercial entities and rests are partially commercial with public service obligations.
The evaluation team was comprised of professionals, technical experts and business leaders alongside officials of cabinet division and concerned ministries.
“The prime objective of the evaluation is to improve the efficiency, transparency, accountability and overall performance of SOEs and Autonomous Bodies (ABs) to ensure good governance,” spokesman for the Strengthening of State-owned Enterprises Governance Scheme under the SPFMS Tajul Islam, a finance division deputy secretary, told BSS.