Trade Unions Wash Their Hands From Any Privatizing Of Public Enterprises

The Minister of Industry and Mines, Youcef Yousfi, confirmed this Sunday the cancellation by the President of the Republic of the process of privatization of public companies, initiated at the last tripartite meeting.

In a statement to the press Mr. Youcef Yousfi asserted that “the opening of the capital of public enterprises is among the prerogatives of the President of the Republic”.

“We have never proceeded to the opening of capital of companies without consultation at the level of the Government (…) The last word goes to the President of the Republic. No capital opening, no privatization of a national company will be made without the prior agreement of the President of the Republic, and these are his prerogatives,”  the industry and mines minister underscored on the sidelines of his working visit of inspection on Sunday to the province of Relizane in western Algeria.

As a reminder, last December 23, the Government signed, with its partners the UGTA Union and the Employers’ Organizations, “a national economic and social growth pact” aiming in particular to allow private companies to take the participation of public companies.

 “We will facilitate the opening of the capital of small and medium-sized public companies in the framework of the legislation in force,” Prime Minister Ouyahia said during the meeting. 

Notwithstanding, privatization operations of public enterprises must have in this sense the endorsement of the Presidency of the Republic himself.

The Government received a directive from the head of state to submit for approval any privatization, according to well-informed sources. 

A decision, that prematurely halts the privatization process that was triggered, after the signing of the Public-Private Partnership (PPP) Charter, on December 23, between the Government, the UGTA Union and the FCE Forum. 

“We will facilitate the opening of the capital of small and medium-sized public companies in the framework of the legislation in force,” declared Mr. Ouyahia at this meeting.

The injunction of President Abdelaziz Bouteflika, expressed about twenty days after this Tripartite is viewed by observers as aimed at a reframing of the Government of Ahmed Ouyahia. 

Theoretically, the Prime Minister, known to be a responsible for the respect of the hierarchical ladder, consults the President of the Republic on any step he undertakes. What happened this time? Are the communication channels blocked?

The FLN party, which has, from the outset, expressed its hostility to the Government’s intention to resume the process of privatization of public companies, organized on January 3, a Parallel Tripartite meeting, in the presence of officials from the UGTA Union and the FCE Forum including Abdelmadjid Sidi Said and Ali Haddad.

Djamel Ould Abbes, General Secretary of the parliamentary majority party, behaved, as usual, as a whistleblower. He did everything to create a “climate of suspicion”.

“The FLN wants to preserve, keep and protect the strategic public sector. All strategic companies are untouchable. It is an irreversible position. This is the oath of November, he argued. 

This concerns Sonatrach and Sonelgaz as well as ENIE, ENIEM, PMA Constantine and SNVI companies. All this public sector is sacred to the FLN. It is protected by the Constitution. Our President of the Republic and President of the Party also protects the public sector, ” noted Mr. Ould Abbes.

However, during the Tripartite encounter held on December 23, the privatization of strategic public enterprises was not mentioned. It was about opening up capital for those SMEs facing financial woes.

“From today, the Government will coordinate with us,” hammered Ould Abbes in a tone almost threatening. He then summoned FLN officials to evaluate the action of the Government of which his party is a part. 

Why does the FLN not evaluate and control the Government action in Parliament where it has a majority? Constitutionally, the Parliament is the only legal framework where the action of the Executive can be controlled and assessed. 

Meanwhile, the Unions have also that they wash their hands from any privatization of national public enterprises, dubbing it as most nefarious for the steady workers’ employment and for the national economy as a whole.