Minister for Public Enterprises, Sir Mekere Morauta, today announced that the O’Neill-Namah Government had abolished the Department of Public Enterprises.
He said the decision, approved by National Executive Council, was to reduce waste and inefficiency.
“The Department has a recurrent budget of K4 million a year and a development budget of K5 million,” he said.
“Yet there is no evidence of any constructive policy input from the Department to myself as Minister, or the previous Minister.
“It was created by the former Government with an establishment of 61 positions and personal emoluments of K3.5 million. "Yet it has only a Secretary and 18 staff.”
Sir Mekere said the redeployment of the 18 staff within the Public Service, without loss of service or employment rights and to avoid costly retrenchment, was being considered.
The policy and advice functions of the department will revert to Treasury and IPBC.
“IPBC was never set up to be a policy-making institution like Treasury, Planning, or Attorney-General’s,” Sir Mekere said. “Nor is it a co-ordinating department.
“Its job is simply to manage and repair Public Enterprises under its control. That is its core function.
“When we need policy input, we will consult the relevant departments.”