There is no need to
dispose of state owed assets, new listings on the stock exchange can bring much
needed cash into the treasury without losing the assets' future earnings
capabilities, at the same time, forcing greater efficiencies by adding more
regulations from the Securities Exchange Commission. Protecting employment,
both Workers and Management jobs in line with performance, from threats
associated with state funding and offering Investors peace of mind as to future
annual returns.
Grouping the shares held by the corporation sole in Water
Management, Electricity Generation and Distribution, and other state run
utilities under a National Utilities Corporation can offer investors, such as;
Pension Funds, Workers Unions, Insurance companies, a valuable Return on
Investment. This is not new thinking, as utility listings are seen as; safe
havens, recession proof, low risk instruments on the New York, London and other
well establish global Stock Markets. Other groupings, as sectors matures, can
follow a similar path; Tourism and Real Estate Assets for example, followed
closely by Transportation and, in the long-term, Agribusiness.
Learning from past failures and successes, floating ten
percent of such holding companies can raise billions, via this initial public
offering, with a onetime shares price gain, paid into the state's current
account can reduce the national deficit simultaneously, decreasing the need for
further borrowings. Such future earnings can result in additional annual
revenues of ninety percent of dividends declared and paid, while reducing
political influence on the operations, as the holding company is made much more
transparent.
Reducing or even eliminating, line item expenditure,
subventions from taxpayers, as tighter forecasting, controls and reporting will
produce better capital returns and maximum daily outputs. Professional
management will have to plan and budget accurately to finance all necessary
repairs, maintenance, and expansion activities and be held responsible for cost
overruns and missed deadlines, also motivating staff and increasing
productivity, remembering that the relevant union will also own shares.
Hiring professionally trained and technically skilled
employees, whether by individual or collective negotiated agreements, to fill
the approved organizational structure is key. Implementing the board approved
Strategic Plan, projected with contingences to adjust to current market
conditions and response to unforeseen circumstances, is crucial. Reporting on
time to regulators and shareholders reduces any risks associated with
corruption.
Maintaining investor confidence by predicting quarterly
growth and executing within that targeted range is the executive management
responsibility. Allowing the entity to independently raise capital and engage
in borrowing as required, both commercially on the open market and from
international agencies, on its own strengths is essential, limiting the state's
role to that of an investor and a regulator. Hence, Government must restructure
the boards, with experience and multi discipline personnel, to guide policies
to list such operations in the very short term and over the long term to
produce many years of positive performance.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
