Kathmandu, September 16
The Prachanda government has initiated a process for the dissolution of National Trading Company Limited, citing increasing burden on the national economy.
The public sector utility has not even been able to provide salary and allowances to its staff on its own.
The government concluded it will be better to dissolve the utility instead of bearing the burden of having to provide pay and perks to its employees.
A source at the Ministry of Finance said: The state got nothing from National Trading, it only became a burden to the economy. That’s why we have initiated a process for its dissolution.
So far, the utility has borrowed Rs 900 million from the Ministry of Finance in the name of providing salary and allowance to its employees
So far, the utility has borrowed Rs 900 million from the Ministry of Finance in the name of providing salary and allowance to its employees.
It has recently sought Rs 110 million more. The source said: Reviving National Trading is not possible. Realising this, the ministry is initiating a process for its dissolution instead of continuing to provide salary to its employees.
Reviving National Trading is not possible, so the government is initiating a process for its dissolution instead of continuing to provide salary to its employees.
National Trading sells petroleum products, foodstuffs, sugar and salt at concessional rates.
But the profit it generates is not enough to foot even 50 per cent of pay and perks to its employees.
The utility has movable and fixed assets worth around Rs 16 billion. While the private sector is operating in same areas successfully, National Trading has not been successsful. Stakeholders say the utility is bleeding dry because it has turned into a recruitment centre for cadres of political parties.
Stakeholders say the utility is bleeding dry because it has turned into a recruitment centre for cadres of political parties
Currently, the utility has 300 employees. Even after start of the dissolution, the government is unclear about their fate.
The source said talks are on the possibility of adjusting them in other offices or giving them retirement.
The start of the dissolution process has made National Trading employees angry.
Its GM, Satya Narayan Mehata, told Onlinekhabar: Until last year, there were 400 employees, now there are 300.
If the government wants, we can repay our debt within a year and start earning profit. We don’t know what the government really wants
Mehata: If the government wants, we can repay our debt within a year and start earning profit. We don’t know what the government really wants.
