PCB Initiates Major Overhaul of Financial Operations in State-Owned Companies

The Privatization and Corporatization Board (PCB) has embarked on a significant initiative aimed at streamlining the financial operations of all state-owned enterprises (SOEs).

PCB highlighted concerns regarding the absence of robust financial policies and procedures within several SOEs, noting a lack of established guidelines for expenditure management.

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In response, PCB has commenced efforts to consolidate and standardise financial regulations and procedures across all companies under its purview. Collaboration with financial department heads of the respective entities is underway to ensure coherence and uniformity in these regulations.

Emphasising the importance of transparency and accountability in financial reporting, PCB stressed the necessity of implementing standard accounting policies and procedures within each SOE. These policies are intended to encompass various aspects, including the recording, reporting, pricing, and disclosure of financial transactions, alongside the preparation of financial statements.

Furthermore, PCB underlined the imperative for such policies to receive endorsement from the boards of the respective companies, aiming to instil confidence in financial reporting practices.

Meanwhile, the Anti-Corruption Commission (ACC) has investigated instances of alleged financial malpractice within certain SOEs, with actions taken against employees found to be involved in negligent conduct. Notably, recent investigations have also been initiated, such as the probe into the Road Development Corporation (RDC) for suspected misappropriation of petty cash, underscoring the authorities’ commitment to upholding financial integrity within state-owned entities.