Four State Owed Enterprises or Ministry of Finance Corporations will be taken over by the Druk Holding and Investment (DHI). This was announced by the DHI chairman during the annual press conference held on 2nd July in Thimphu.
The four corporations that the DHI would take are Bhutan Development Bank Ltd., Bhutan Postal Corporation, Wood Craft centre and Food Corporation of Bhutan.
DHI, Chairman, Dasho Sangay Khandu said, “DHI has already discussed with the Ministry of Finance on taking over of the SOEs that are directly controlled by Ministry of Finance (MoF).”
He said, in the past, the opinion of public was that the DHI only took over the state enterprises that are profitable and did not take the rest but he said this was not the situation because it takes time to take over so many enterprises. “The taking over itself does not serve its purpose. After we take over, the functions needs to be reviewed, the objective needs to be understood and operations must be improved,” said the Chairman.
“DHI will take over Bhutan Development Bank Limited, Bhutan Post, Bhutan Woodcrafts, and Food Corporation of Bhutan in the coming months. After that some others will also follow. Once we take over we have to review them and do whatever is necessary to revamp some of them. If needed there will be capital infusion,” Dasho said
He said after improving the corporate governance and setting up a proper system in the line with the companies under DHI, they will look into taking over others.
According to DHI the Bhutan Development Bank Limited is valued at Nu. 287mn, Bhutan Postal Corporation is valued at Nu.23.595mn, Wood Craft Centre is valued at Nu.98.820mn and Food Corporation of Bhutan is valued at Nu. 15mn.
DHI’s fully owned companies are Druk Green Power Corporation, Bhutan Power Corporation, Natural Resource Development Corporation, Bhutan telecom, Druk Air Corporation, DHI Infra, Dungsam cement corporation
DHI’s controlled companies (where DHI owns more than 50% of the paid up equity share capital) are Bank of Bhutan and Dungsam polymers
DHI’s linked companies (where DHI owns 50% or less of the paid up equity share capital)are Bank National Bank, Royal Insurance Corporation, Thimphu Tech Park, State Trading Corporation, Penden Cement Authority, Bhutan Ferro Alloys, Bhutan Board product and Koufuku International Private Limited.