Around 13 State Owned Enterprises (SOEs) under the finance ministry signed the annual performance compact with the ministry today.
The signing of the performance compact is expected to enhance corporate governance culture among the SOEs.
Finance Minister Namgay Tshering said that in a democracy, government keeps changing and when the SOEs remain as it is, there is the risk of becoming politically aligned with no proper achievements.
“The SOEs are performing well in their own ways but if we look at the end result there is nothing much that is accomplished. The performance compact will have clearly set targets for the SOEs,” said Lyonpo.
The performance compact will also serve as the base for rating Performance Based Variable Incentive, an allowance introduced by the government to encourage better performance of SOEs.
The finance minister said that the survival of SOEs should depend on new innovations and not by dominance.
The SOEs have welcomed the initiative.
Thukten Choeda, Chief Executive Officer of Menjong Sorig Pharmaceutical Corporation Ltd. said that as corporate entities SOEs are supposed to improve their corporate governance, which is the principal pillar of success for any company. “The annual performance will give us a good milestone so that we can work with various strategies towards achieving it,” he said.
Kinley Dem
