The new wave of privatization… the sale of state assets “and the people are absent”! Gate of freedom and justice

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A research paper has confirmed that around 1,000 state or co-owned companies and economic bodies have become a target for privatization over the next four years, and that the owners of that wealth, the people, are not will be allowed to express an opinion about its fate through any movement, and will not be able to stop the implementation of the decision to dispose of their property. .
The document, published by the website of The Tahrir Institute for Middle East Policy, was based on the International Monetary Fund report mentioned earlier. The state owns more than 300 companies, including companies that fall under the public business sector, the public sector, and companies owned by the armed forces, along with nearly 645 companies or joint ventures with the private sector and 53 economic bodies, each representing a potential target for privatization at least during the next four years.
The editor of the paper added, “Regardless of the validity of the reasons behind the privatization decision, the fairness of the price, or the impact of the decision on the market, it is certain that the owners of that wealth, the people, will not allow. to express an opinion about its fate through any movement, and they will not be able to stop the implementation of the decision they dispose of.” their property.”

falsification of reality
Regarding the difference between reality and what is seen, the paper said that “later it will appear that the economy has become freer, according to the standards of the International Monetary Fund, but after the nails of society are were trimmed, and her right to control her property was removed.”
And indicated that “this new stage of privatization comes in the context of a closed and restricted public sphere, in which civil society is trying to naturally confront the law of appeal against state contracts , which appears unique in its authority, including the removal of the right of society to control the fate of its property, and the restriction of the right to litigation.” Before the Administrative Court, which is the competent court to consider appeals against government decisions by referring the law to the Constitutional Court.
And she pointed out that, “Indeed, one of the court circuits decided to refer the law to the Supreme Constitutional Court, to consider whether it is compatible with the constitution or not, based on a report from the State Commissioners Authority , which is a sector affiliated with the Administrative Court that includes experts who provide technical opinions to the body of the court, who question the constitutionality of the articles in the law”.

a wave of privatization
Under the title “A new wave of privatization in Egypt, a free economy and a society with idly hands,” Bissan Kassab indicated that the new IMF program announced by the Sisi government towards the end of October is the fourth of its kind since 2016 and he has accomplished quite a bit. traditional expressions on such occasions, Which means a lot to followers of IMF programs in general, and its programs in Egypt in particular, such as; The implementation of the comprehensive agenda of structural reform of the authorities will gradually improve the competitiveness of the economy, reduce the role of the state in the economy, and equal opportunities for the private sector.
She revealed that the phrases refer to “the inauguration of a new phase of privatization in Egypt, supported again by the Monetary Fund, a phase that seems exceptional, including announcing for the first time the exit of the state from whole sectors and to announce the targeted income from the program in advance.”
She emphasized that the most important thing is the context in which this program is implemented, which makes it a model for the lack of transparency and for the restriction of society’s right to monitor the fate of its property, with way the economy looks. free, but society is idly by.

Put and sell
Regarding this second, the document considered that the beginning of this wave was launched by Sisi last April at the “Egyptian Family Iftar” party in the month of Ramadan, who instructed the government to announces a program for the participation of the private sector in state assets. targeted ten billion dollars a year for a period of four years. .
And she explained, “It seems that the advance announcement of the government’s target size of “offer”, which is the term that the government always prefers to use as an alternative to “privatization” or “sale” of government assets, is notable, as it raises questions about whether this estimate is based on Egypt’s foreign exchange needs or on the fair value of these assets.

fundamental change
The document considered that “this fundamental change goes back to November 2021, when the coup government issued a statement that revised what it said were” the results of an important study prepared by the Center of Support for Information and Decision, a center for studies affiliated with the Council of Ministers, on steps and measures that improve the orientation of the state towards support and assistance. private sector”.

The most important thing included in the statement about the results of the study, which has not yet been seen by the public, is the tendency to define the main sectors in which the state will continue to operate, the sectors that will emerges from them, and the sectors that will gradually emerge from it, in addition to reforming the public sector by keeping the companies companies in the most strategic and priority sectors, and the abandonment of the companies in the least priority sectors.

This announcement is considered a fundamental change in the history of privatization in Egypt, which dates back to the early 1990s. For the first time, the logic behind privatization is that the state abandons almost all sectors, and chooses only certain sectors to continue investing in.

Output ratios
The paper cited the exit rates that were announced in mid-June, and the draft state ownership document, which is still on the table for amendment based on consultations held with representatives of the private sector only, without any other party, adding that the document revealed the state’s intention to exit the manufacturing sector within three years with a percentage. The next sectors are spinning and weaving with 90%, printing and packaging with 78%, engineering industries with 77%, chemical industries with 75%, food and beverage industries with 73%, pharmaceuticals with 50%, and metal industries with 40%.

labor intensive sectors
The document indicated that these industries that Sisi’s government will sell are labor-intensive sectors, such as the spinning and weaving sector, as the top companies in the public business sector in in terms of number of workers, which exceeds 49,000 workers according to the latest available. data. The same applies to the chemical industries and the paper and packaging sectors, which include more than 26 thousand workers.
The document emphasized that the Sisi government “did not see the need to discuss the impact of leaving those sectors on the future of employment in them after privatisation.”

The lack of control
The document revealed that this new stage of privatization is linked to the lack of minimum standards of transparency and accountability. The silent aspect of any controversy about this stage is that it occurs in the absence of judicial supervision of agreements with the private sector on the one hand, and the restriction of the capacity of the supervisory bodies, led by the A Central Auditing Organization, which monitors the fairness of those agreements on the other hand. This new wave comes from Privatization after the approval of two legislations that restricted the judicial oversight and the oversight of anti-corruption regulatory bodies on any planned agreement between the government and the private sector.

Regarding the role of the Constitutional Court, which has become almost dead, the paper said, “The fate of the dispute about people’s property is still pending, until the decision of the Supreme Constitutional Court on the constitutionality is made of law, and it is the same court that Adly Mansour was the president of before he reached the presidency after the overthrow of the late President Mohamed Morsi.” However, a final decision on the constitutionality of the law is close after the court decided to announce its decision in mid-January, and if the case is dismissed, it will mean the fate of all existing contracts of privatization was made far from any judicial judgment. surveillance.

The document referred to Al-Sisi’s role in nullifying the effect of judicial oversight, since they issued a decree in July 2015 that issued a decree-law to specify the criteria to exempt heads and members of independent bodies and supervisory bodies from their posts. independent according to the constitution.

She explained that this law was actually implemented less than a year later, specifically in March 2016, by dismissing Hisham Geneina, head of the Central Audit Organization, which came a day after the Supreme Security Prosecution of the State announced that Geneina had been summoned for questioning regarding his statements[u dwar l-ispi]a of corruption in Egypt. 2015.

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