By ANDREW MUKOMA
GOVERNMENT has assured the Industrial Development Corporation (IDC) of its support in the operations of the corporation’.
And government has charged that it will no longer provide guarantees through the treasury on state enterprises that are not viable and not making profit as expected.
Finance Minister Dr Situmbeko Musokotwane has said that the New Dawn government aspires to grow the economy and create jobs for youths, who he said are ruthless as seen from the way they took part in the change of government during the August 12 elections.
Dr Musokotwane said that the fundamental change that came with the New Dawn government has come with a mindset change that the state enterprises must adopt and not conduct business as usual.
He said that the country can only grow its economy with export led economic changes and also expect taxes to generate more revenue for the government.
Dr Musokotwane noted that the UPND government does not expect state enterprises to operate the way they did previously where some would sponsor political activities.
“Government will be friendly to those who want to invest in various sectors in the country and it is the desire of government to transform our economy,” he said.
He was speaking during the official opening of the 5th IDC annual group conference held at Avani Victoria Falls Resort in Livingstone yesterday.
And Dr Musokotwane has charged that the new administration will no longer provide guarantees through the treasury on state enterprises that are not viable and not making profit as expected.
“State enterprises belong to the people of Zambia….so, government expect the IDC to partner with the private sector and create investment and job creation for the young people. The interest of government is to know what is happening in the IDC,” he said
“Government will not force matters of viability of state enterprises. Those practices are over but where need arises, government will intervene,” he said.
“Not all state enterprises have challenges, most of the challenges are caused by the boards and management. Some have been recording profits and able to pay dividends,” he said.
The Minister cautioned that for those that are not doing well, government will not provide financial guarantees for such but must thrive to come up with means of making profits.
And Chairperson for the Parliamentary Committee of Parastatal Bodies, Brian Kambita expressed concerns with lack of adherence to financial public management systems among state enterprises.
Mr Kambiata said that there is a lot of poor financial management among IDC members, adding that going forward, his committee expects strict implementation of public resources under the New Dawn Government.
Chairperson for investment committee under the IDC Father Leonard Chiti assured the government that the corporation will invest where natural resources can create employment for the locals.
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