KATHMANDU, Nov 30: The government has selected three consultant firms for property valuation of four sick public enterprises (PEs).
According to the Ministry of Finance (MoF), the consultant firms have been selected to carry out a due diligence audit (DDA) of the public enterprises that have remained closed for a long time period. The state-owned entities include Janakpur Cigarette Factory, Butwal Yarn Factory, Nepal Metal Company and Nepal Orind Magnesite.
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Issuing a public notice, the MoF stated that S&S Associates has been selected for the DDA of all four public enterprises. Another firm Jin and Associates will assist S&S Associates for the audit of Nepal Metal Company, while S Subedi and Associates will be joining hands with the company for the property valuation of Janakpur Cigarette Factory.
Inviting applications to hire the consultants for the property valuation for the asset management of the PEs, the MoF in July initiated the process of the privatization of the state-owned entities that have remained closed for years. For this purpose, the MoF previously had shortlisted eight consulting firms for Janakpur Cigarette Factory, 12 firms for Butwal Yarn Factory and 11 firms for Nepal Metal Company.
The High-Level Economic Advisory Commission formed under the leadership of Rameshore Khanal, who is now the finance minister, also recommended scrapping out five underperforming state-owned enterprises citing them as a financial burden on the government. Likewise, the budget for the fiscal year 2025/26 also backs the decision of the cabinet meeting in June to carry forward the asset management of seven public entities including Gorakhkali Rubber Udyog, Udayapur Cement Udyog and Hetauda Cement Factory, apart from the aforementioned PEs. The Asian Development Bank will be assisting the government in DDA of these public entities.
According to the MoF, there are currently 44 PEs, out of which 15 are running at a loss and three are inactive. The government has invested over Rs 615 billion in these enterprises; however the returns from these entities have remained pathetic.
