SrinagarJammu and Kashmir State Financial Corporation is facing severe crisis following heavy losses due to poor financial management and unaccountability.
The Corporation with its supported units have incurred significant losses in the preceding financial year due to poor financial management and planning.
According to insiders, the Corporation has incurred loss of over Rs 50 crore and there is a massive liability of gratuity and other administrative issues pilling up in the department. They said that there are over 3000 court cases lying in various Courts of the State.
Sources told Kashmir Observer that some of the reasons for incurring losses were mainly due to “deficiencies in financial management, planning, implementation of project, operations and monitoring.
They said that JKSFC is on its last leg with such heavy debt and sick units running across the State.
In this regard, Minister for Finance, Labour & Employment, Haseeb Drabu on Thursday took stock of the situation at a Board meeting at its head office in Srinagar. Drabu reportedly urged the Board of Directors and stakeholders to work for its revival.
According to official spokesperson, the minister said that the government is mulling to take a greater shareholding of JKSFC by share buy-backs process and development of entrepreneurship scenario across the State.
Chairing a board meeting, Drabu said that in order to revive the Corporation, the Government is mulling to change the institutional ownership and give new life to it.
We have to revive the corporation for the greater good the entrepreneurs of the State and infuse a new life into it, Drabu told the meeting.
Sources quoted Drabu asserting that the bunch of incompetent officials has ruined the corporation. He said that in this world of cut-throat competition, techno, economic constraints, market problem and financial uncertainties, it has become quite imperative to look for innovative ways of conceiving appropriate solutions in order to achieve monetary security and success in ventures.