2016年-世界发展银行全球_Lesotho_State-Owned_Enterprises___A_Country_Policy_Note_96页_3mb

Summary of the Lesotho State-owned Enterprises Policy Note

Core Content

This document, titled State-owned Enterprises: A Country Policy Note for Lesotho, provides an analysis of the state-owned enterprise (SOE) sector in the context of the country's declining revenues from the Southern African Customs Union (SACU) and the need for improved fiscal management. The report was prepared by the Ministry of Finance (MoF) of Lesotho and supported by the World Bank, with the aim of identifying opportunities to enhance SOE oversight, transparency, and performance, while managing fiscal implications such as dividends, transfers, subsidies, and contingent liabilities.

Main Findings

• SOE Sector Overview: The SOE sector in Lesotho was established in the 1970s to promote domestic investment and has since undergone significant privatization, especially during the 1990s. Currently, there are six wholly owned SOEs and a number of partially owned enterprises.
• Performance: Despite some loss-making SOEs, Lesotho's SOE sector is among the better performing in sub-Saharan Africa, contributing between 2% and 5% of GDP to the national budget. This is largely driven by the mining sector, particularly Letseng Diamonds.
• Fiscal Impact: SOEs have contributed significantly to government revenues through taxes and dividends, with Letseng Diamonds accounting for a large portion of both. However, the sector has also posed fiscal risks, especially in times of economic downturn.
• Contingent Liabilities: These have generally declined, but there have been increases in loan repayment arrears, particularly in 2015/16. The government has lent, on-lent, or guaranteed loans to several SOEs, including WASCO, LEC, LNDC, and Econet Lesotho.
• Government Support: Government support to SOEs has taken the form of capital grants, subsidies, and direct or indirect shareholding. However, this support has been decreasing over time.
• Governance Framework: The SOE sector is governed by a mix of legal and regulatory instruments, including the Companies Act and the Public Finance Management and Accountability (PFMA) Act. While the legal framework is relatively sound, there are opportunities for improvement in terms of oversight and transparency.

Key Issues

• Lack of Disaggregated Data: The report notes that due to a lack of detailed data on flows between the state and SOEs, cross-checking of financial statements with government data was not possible.
• Weak Governance Structures: SOE boards often lack independent technical and financial expertise, and are composed more of former public servants or ex-officio members than of private sector professionals.
• Insufficient Monitoring: The SOE oversight unit in the MoF is not receiving regular financial statements from SOEs, which hampers its ability to effectively monitor and analyze performance.
• Fiscal Risks: The sector's fiscal contribution is highly dependent on Letseng Diamonds, and without it, the net fiscal impact could be neutral or negative. Additionally, there are risks from foreign currency loans and local currency repayments.

Policy Recommendations

1. Strengthen SOE Oversight and Transparency

• Recommendation 1: Enhance the capacity of the SOE unit to prepare regular performance reports and monitor fiscal implications.
• Action Plan:
  • Within 6 months: Conduct an institutional assessment, implement a training program, and compile reporting schedules.
  • Within 1 year: Design and approve an SOE policy and program.
  • Within 2–3 years: Fully implement changes to SOE governance and management practices.

2. Improve Corporate Governance and Performance

• Recommendation 2: Develop a national SOE policy and program that outlines government objectives, targets, and accountability structures.
• Recommendation 4: Professionalize SOE senior management and boards.
• Recommendation 5: Conduct diagnostic studies on selected SOEs to identify performance gaps and improvement opportunities.

3. Promote Divestiture of Non-Strategic Companies

• Recommendation 3: Identify and divest non-strategic companies in line with the SOE policy and program.

4. Enhance Legal and Institutional Framework

• Recommendation 6: Review and strengthen the legal and institutional framework governing the SOE sector, including improving the oversight function of the SOE unit and the role of the Auditor General and Public Accounts Committee (PAC).

Action Plan and Timeline

Conclusion

The SOE sector in Lesotho is a key contributor to government revenues, particularly through Letseng Diamonds. However, it also poses significant fiscal risks, especially in times of economic instability. The report highlights the need for improved governance, transparency, and monitoring mechanisms to ensure the long-term sustainability and effectiveness of the sector. It also emphasizes the importance of aligning SOE management with international best practices to enhance performance and reduce fiscal burdens.