9 Apr 2010

Marshall Islands SOEs under microscope, and maybe the hammer

8:18 am on 9 April 2010

The Marshall Islands finance minister, Jack Ading, says he will keep pushing for action to stop government money being used to prop-up inefficient state owned enterprises.

A new report, instigated by the Asian Development Bank, has recommended major reform of the sector, noting that only one of the country's 11 state owned enterprises consistently makes a profit.

Mr Ading says he thinks the best option would be to privatise most, if not all the state-owned enterprises, or look in to public-private partnerships.

"Our main funding is from our donor countries and we need to be more mindful about how we spend our money from our friend, donors. It's not wise to keep pouring money into these S-O-Es"

Jack Ading says any action would be designed to keep job losses to a minimum.