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Simons administration to continue restructuring of state companies

PARAMARIBO - President Jennifer Simons will reportedly continue the restructuring of state companies and does not rule out either selling some of them or shutting them down.

Times of Suriname

She explained that the government can no longer afford to keep these companies afloat with taxpayers’ money as they are losing too much money. Only a few state companies actually generate income for the treasury. “Various administrations focused on this matter. The previous administration also focused on it and we are also doing so right now.” President Simons pointed out that there is a clear difference between state companies that produce profits and companies that are a financial burden. She referred to the State Oil Company (Staatsolie) as one of the companies that is profitable and therefore makes a positive contribution to the treasury. On the other hand there are companies that remain dependent on state subsidy year after year without producing any profit for the state. The head of state also mentioned Melkcentrale which used to receive state subsidy while it should have made profits. She explained that the reason for the financial problems does not lie in the business model but in the mismanagement. “That company received state subsidy. Not because it could not be profitable but because it was robbed until there was nothing left.” Simons still sees potential in the FAI but the president explained that the funds of this state company are also depleted as a result of mismanagement. Instead of handing over money to the state, the government kept making state subsidy available to keep the company afloat. “Because the FAI was also robbed. And so were many other companies.”

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