PRIME Minister Prayut Chan-o-cha has threatened to take strong action against money-losing state enterprises opposed to the government’s restructuring programme.

He said state-owned TOT and CAT Telecom had resisted drastic changes as required by the State Enterprise Policy Committee, the so-called superboard, despite their growing losses and bleak futures.

Prayut said TOT and CAT would not be economically viable if they did not adapt to changes in the telecommunications sector.

Both state enterprises once enjoyed financial benefits thanks to their monopolies in the sector. The superboard recommended that they needed to be reorganised to survive after the end of their monopolies.

They were ordered to consolidate core businesses that are similar, and they may have to form joint ventures.

Face big job losses

TOT currently has about 15,000 employees and CAT about 6,000. They are expected to face big losses because they no longer enjoy big concession earnings from privately owned telecom companies.

Some senior executives in the agencies are opposed to the changes and have refused to sign documents to kick-start reorganisation measures.

The prime minister said it was necessary for state enterprises to implement the reorganisation programme.

“Please do not protest. I will take action against those who are opposed to these necessary measures. If we don’t do it, these state enterprises will be heading for bankruptcy,” Prayut said.

He was speaking at the opening of an institute that trains the public on how to use digital technology.

Digital payment scheme

He urged the public to embrace digital payment technology by registering for the government-sponsored PromptPay system.

He insisted that the system was safe and he would personally register if necessary to boost public confidence in the payment service, in which money transfers of Bt5,000 or less are free.

PromptPay is designed to serve low-income earners while providing the government with financial data that will be used to improve disbursement of welfare funds.

Prayut said low-income earners registering for PromptPay would allow the government to manage public money better.