Himalayan News Service

Kathmandu, April 1:

Employees of the financially crippled Nepal Industrial Development Corporation (NIDC) have criticised the government’s decision of liquidation of the state-owned enterprises as an ‘unjustifiable’ move.

They raised serious concerns over the report that the government is preparing to liquidate the NIDC by 2004-05, which is based on biased report by the PriceWaterHouseCoopers.

“The cabinet’s recent decision to lay-off 73 per cent of employees by the end of current fiscal year has no ground and backed by a big conspiracy of ‘economic mafia’,” lambasted Buddhi Sedhain, president of NIDC Independent Employees Union, today.

As per the government’s move, 130 employees out of 170 would be laid-off by mid July. The study has recommended an eventual liquidation of NIDC, citing huge losses incurred in last couple of years. As of the fiscal year 2001-02, its net loss stands at Rs 991.10 million with a cash loss of Rs 189.76 million. Of the total loss, Rs 801.34 million is of loan loss provision that the NIDC has been allocating for its loan investment according to the central bank’s directives, said Hari Ghimire, general secretary of the union.

“Frequent intervention by the government and over politicisation in the board of directors is the root cause for the fall of NIDC in last one decade,” said Bhimsen G C, vice-president of NIEU. Interestingly, 12 chairmen and 12 general managers has been appointed in last 10 years.

“The recommendations itself is contradictory, as it has suggested Rs 300 million for further operation and reform measures, whereas the liquidation cost has been recommended an additional Rs 610 million,” G C argued.

The employees union has come up with some suggestions for the government like execution of profitable measures, timely reforms in management and administrative regime, optimum utilisation of resources, efficient appraisal procedures and transformation of unproductive assets into productive investment.