The government has announced plans to restructure and where possible merge non-performing State corporations raising fears of job losses among civil servants in the coming months.
The Government noted that of the 349 State enterprises only five percent were remitting revenue to the exchequer leading to the current financial crunch.
This came as the State questioned the Sh1Trillion pending bill mainly among the corporations that had ballooned a few months after the last general elections.
According to the Prime Cabinet Secretary Musalia Mudavadi, majority of the government enterprises were relying on funding from the State, a move he termed as unacceptable.
He noted that of the 348 corporations, 79 were supposed to be commercial enterprises but was quick to note that there was little revenue generated from them.
Addressing the press at Lake Naivasha Resort after opening an induction workshop of board members of State Corporations, Mudavadi promised radical changes.
Mudavadi was however quick to add that when the time came, the changes would be done professionally and systematically.
He admitted that the country was facing a financial crunch after inheriting a ‘skunk’ from the previous government adding that they were keen to get the nation out of the mess.
Mudavadi questioned the pending bills which had blown up before the August elections adding that an audit process had kicked off.
He admitted that failure to pay the bills had affected thousands of traders who were facing the auctioneer hammer but was quick to promise action in the coming days.
Mudavadi lashed at some leaders who were in the streets accusing the government of graft, adding that they were responsible for the current financial crisis.
Flanked by members of the boards, Mudavadi promised them government support on condition that they would provide the necessary services to the public.
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