NLA passes bill on state enterprises

The National Legislative Assembly (NLA) has passed a bill to amend the Budgetary Procedure Act, which would usher in a narrower definition of what constitutes a state enterprise.

The legislation was pushed through unanimously yesterday.

Based on Section 4 of the bill, the first definition covers governmental organisations or business units owned by the government.

The second definition covers companies and public companies in which the government owns more than 50%.

The third definition applies to subsidiaries of companies in which the government has a majority stake.

Several lawmakers argued that Section 4 would cause state authorities to scrutinise only state enterprises and their subsidiaries.

However, a member of the NLA subcommittee explained that the Office of the Auditor-General could still examine companies of which subsidiaries own more than 50% through the balance sheets made by their parent entities.

Meanwhile, Section 52/1, which is still provisional, states other laws aligned with the bill must have their state enterprise definitions adjusted to comply with the legislation within three years.

This clause drew opposition from lawmaker Kamnoon Sidhisamarn, who said organisations should decide on their own definition.

He added that the three-year deadline would also put the burden on MPs and senators after the election as they would have to amend the relevant laws in compliance with the bill despite the fact that they are also obliged to deliberate numerous bills in relation to national reforms.

The lawmakers later agreed on a fiveyear deadline.