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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    The public companies' dilemma: Losing institutions “milk” 2 trillion dinars a year from the state, f

    Rocky
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    • Post n°1

    The public companies' dilemma: Losing institutions “milk” 2 trillion dinars a year from the state, f Empty The public companies' dilemma: Losing institutions “milk” 2 trillion dinars a year from the state, f

    Post by Rocky Mon 24 May 2021, 7:55 am


    [size=30]The public companies' dilemma: Losing institutions “milk” 2 trillion dinars a year from the state, free of charge ... and the solution is “sleeping” in the hands of the parliament

    2021-05-24
    [/size]
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    Yes Iraq: Baghdad

    The file of state companies stands, stating the fate and uncertainty between governmental and popular dissatisfaction and dissatisfaction, as well as the specialists, due to the fact that they are losing companies, and the desire of the parliament “confused” about how to solve the issue of these companies, as Parliament objects to structuring these companies as well as confusion about going towards participation. These companies are with the private sector.
     
    The state costs salaries ... and the country gets drunk with the importer
     
    More than 170 public companies with more than 420,000 employees, costing the state about 2 trillion dinars annually due to the funds it needs to pay the salaries of its employees due to insufficient funds that these companies succeed in achieving from their production, as they are losing companies that cannot cover their operating expenses and the salaries of their employees or develop Its product.
    In addition to the initial loss, the other loss caused by these companies is the failure to provide good products capable of stopping the flow of the importer of materials, which causes Iraq to lose about $ 40 billion annually for import.
     
     
    173 companies are 'clinically dead'
    According to the data of the Ministry of Planning in 2006, 192 companies belonging to the public sector operating within the ministries and institutions of the state were counted, the majority of which were almost collapsed (technology, production, and competition between the labor market), and about 20% of these companies were removed or decimated due to the war operations, while the remainder About 173 public sector companies are now state-owned, while the specialist in managing state institutions in crises, Ali Jabbar al-Fariji, described them as "alive, but with industrial, commercial and production death counters."
    He explained that “in a simple economic concept (the profitable companies are: companies whose production rates cover the costs of their operating budgets, including the salaries of their employees, and produce a surplus as general profits and development profits) in the sense of companies with returns and growth, and if we take this criterion on state-owned companies (173 sector companies) General) We find losing companies and disguised unemployment rates in them at high inflation, in addition to the type of backward technology in which these companies operate, which makes the process of reviving these companies to the levels of profitable companies difficult and at high costs, exceeding the rates of establishing new factories and companies.
    While Al-Freiji considered that the state does not own profitable companies, the economic advisor to the Prime Minister Mazhar Muhammad Salih had indicated that 28% of these companies work and achieve profit and the rest 72% are losing companies, and that these 28% are mostly companies specialized in the rentier oil sector.
     
     
     
    What is the solution?
    The solution to these multiple losses remains, is to restructure or close these companies, but this option is rejected by the parliamentary parties for accounts related to the salaries of employees and the risk of their dismissal from work, while Parliament stands in a dilemma in front of another solution, which is the partnership between these companies in the public sector, with the private sector. Which parliamentary blocs feel about under justifications and fears of "the inability to preserve state ownership of these companies."
    The Parliamentary Economic Committee stated, on Monday, that the law on partnership between the public and private sectors is still in the process of study despite the completion of 80% of it, and indicated that the obstacle standing in front of the law is how to preserve the state's assets.
    A member of the committee, Nada Shaker Jawdat, said, "Meetings are still going on with the Ministry of Planning, the Contractors Union and many organizations as well as the Finance Committee, and important steps have been put in place in this law."
    She added, "The private sector has become a necessity, but first there must be security stability to implement this law and state assets must be protected."
    Jawdat added, "The law has only remained minor points of contention in order to put the final touches on it," noting that "the main axis that everyone fears is (how to preserve the state's assets) and also provide a service to the citizen with acceptable matters."
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