FIRMING GOVERNANCE
SEC is to tighten disclosure rules for SET-listed state enterprises as bill to set up a holding company is set to come into force.
The Securities and Exchange Commission (SEC) will soon tighten information disclosure requirements for SET-listed stateowned enterprises (SOEs) to comply with a bill to establish a super holding company, expected to come into force by year-end.
The information disclosure will focus on corporate governance, board appointments and business operations to make sure that these state enterprises work in an efficient and transparent manner and free from political intervention, Chalee Chantanayingyong, SEC deputy secretarygeneral, said.
Overhauling all 56 state enterprises is high on the National Council for Peace and Order’s agenda to prevent politicians from taking advantage of state enterprises. Politicians have been blamed for exploiting state enterprises for their own benefits and had often rewarded aides or connected persons with seats on state enterprises’ board, which come with huge perks.
In an effort to stop this happening again after an elected government is installed, the State Enterprises Policy Commission or superboard is drafting a bill to centralise management power in state enterprises by setting up a super holding company to own and supervise 12 publicly listed SOEs, including five listed on the SET. The remaining 44 SOEs will come under the state enterprise policy committee.
The 12 state enterprises are PTT Plc, Airports of Thailand, MCOT, Thai Airways International, Krungthai Bank, CAT Telecom, TOT, The Transport Co, Bangkok Dock Co, Dhanarak Asset Development, Thailand Post, and Syndicate of Thai Hotels and Tourists Enterprises.
Earlier, superboard member Banyong Pongpanich said good governance standards for state enterprises, which oversee the public interest, should be set at a higher level than for other listed companies.
Mr Chalee said CG practices of SOEs are different from public companies as state enterprises are involved with ministers and regulators.
He cited Swedish SOEs as an example. Sweden has guidelines for state enterprises to play active role in CG by issuing law to support fair competition when they vie with private sector. The law also bars Swedish state enterprises from taking advantage of the private sector and requires them to state clearly whether their establishment’s objectives are for commercial or public service purposes.
Thai SOEs could do with a CG reform to help raise transparency and efficiency, said Mr Chalee. However, possible conflict with labour unions and potential intervention by politicians remain a concern, he said.