The Fiji government is to sell its shares in Fiji Broadcasting Corporation Limited (FBCL). Interim Public Sector Reform Minister, Poseci Bune, said the decision to divest selected Government Commercial Companies is based on the premise that the government is not in the ‘business of running a business’ and such activities are best handled by private entrepreneurs. “The government’s role however is to create an enabling environment for business rather than compete with the private sector,” Mr Bune said.
The sale of FBCL shares will be carried out in two phases. The first has already been undertaken. “Phase one involved the valuation of shares and recommendation of the most appropriate method of its disposal,” he said. “This has been completed and the Share Sale Steering Committee of the Ministry of Finance will now implement phase two which will involve a full auction, where all potential buyers would tender and the best qualified bidder selected.”
This would not only support the state’s objective of privatising government companies but will also be beneficial to FBCL as new shareholders would be able to bring in new expertise and capital, reports The Fiji Times Online.
(Source: Asia-Pacific Broadcasting Union)
However, the interim government has confirmed it will retain control of the national broadcaster once it has been privatized. Interest in taking over FCBL has been expressed from Sri Lanka, India and New Zealand. There are expected to be extensive job cuts once the sale is completed. The sale has been announced as the interim government continues efforts to cut costs, ordering a 10 per cent cut in operating costs for ministries and departments. (Source: Radio Australia)
(Source: R Netherlands Media Network Weblog)