Public Enterprises (PE) cross debt and other indebtedness study for the Ministry of Finance in Kenya
The study was part of structural adjustments recommended by the World Bank and IMF which was key towards divesture of government investments in the parastatals and finally privatisation of the same. The assignment was for carrying out a survey of cross debt and other indebtedness between the government and the public enterprises including advising the government on the major causes. The key activities included:
- Carried out the audit of some 52 public enterprises and assessed their level of indebtedness.
- Analyzed the debt in its various categories separating the loans from other debts, etc.
- Interviewed the various representatives of the various PEs in addition to carrying out the financial review to determine the major causes of debt accumulation. We recommended to the government measures that it could take to eliminate or minimize future parastatal debt accumulation.
- Classified the debt into agreed mutual debt, which could be bilaterally or multilaterally washed out as well as disputed debts, which will still require additional reconciliation.
- Made recommendations on required financial and operational restructuring of the enterprise