Thursday, Jul 28, 2016

Muscat: The Oman’s Ministry of Finance has called on companies fully owned by the government to increase the percentage of Omani employees, particularly in senior positions, according to a circular issued on Tuesday.

It comes after the State Audit Control reported that the nationalisation rate in these companies is very low and recommended mechanisms to promote Omanisation.

The Ministry of Finance has asked those companies to replace expatriates in senior positions with Omanis.

“It should be noted that 70 per cent of the employees in such companies are expatriates who are over 60 years,” said the circular.

Moreover, the ministry directed the government’s companies to follow the Omani Labour Law by providing the details of the employee in the job contract, including one-year contract, basic salary and allowances.

The ministry also urged the companies to come up with a five-year plan to replace expatriates with Omani nationals.

It directed all government agencies to stop issuing travel allowances to employees assigned for work inside the country that does not need a night’s stay outside the base town.

The ministry explained that the minimum distance for the work assignment should not be less than 250km to qualify for a travel allowance.

“The government agencies should only pay 75 per cent of the allowance to the employee assigned for a work assignment outside the country when he or she has a sponsor and 50 per cent for internal assignment,” said the circular.

The ministry pointed out that an employee using his or her vehicle on work assignments inside the country will be entitled for travel allowance.

For air travel, business-class tickets should be issued only to undersecretaries, advisers, doctors, consultants, experts and walis. The others must be allotted only economy-class tickets.

Last week, the ministry announced that tracking devices will be installed on all vehicles belonging to the government agencies, in a new move to monitor and cut back government spending. The ministry found an increase in expenses incurred by government vehicles recently.

These moves come as the country grapples with a weakened economy amid the slump in oil prices. The ministry has issued 19 circulars so far this year aimed at controlling and managing spending.

In April, the ministry ordered all public institutions to halt all privileges granted to public employees outside the framework of the salary payroll.

Also in April, the ministry called on all government units to raise efficiency in fee collection.

The ministry aims to gradually reduce the country’s dependence on oil revenues.

The ministry also asked the government units to explore the services they offer to the public that could be charged to help strengthen non-oil revenues.

Last week, the ministry called on all government agencies to revise all service contracts, including cleaning services and building maintenance.

The 2016 General Budget released in January projects 3.3 billion Omani riyals (Dh31.47 billion) in deficit spending for 2016, which it says will try to reduce by improving the non-oil revenues as well as cutting expenditures.

Oman posted a budget deficit of 4.5 billion riyals in 2015, as revenues declined by more than 50 per cent.

by Fahad Al Mukrashi Correspondent

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