No job losses expected from parastatal reforms – State House

State House has moved to assure the nation that the Cabinet’s decision on Monday to approve the dissolution and merger of several government parastatals will not result in job losses.

Statehouse spokesperson Hussein Mohamed reiterated that the reforms will be implemented in a manner that protects employees in the affected institutions.

“No State Corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the Public Service,” he stated.

The reforms announced on Tuesday entail merging 42 State Corporations with overlapping or related mandates into 20 entities. Additionally, nine State Corporations will be dissolved, with their functions transferred to relevant ministries or other State entities. Furthermore, 16 corporations with outdated functions will be divested or dissolved, and six State Corporations will undergo restructuring to better align their mandates and enhance performance.

According to State House, the reforms aim to streamline government operations, reduce waste, and curb excesses.

“The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer,” Mohamed added.