Some 81 out of 111 public companies saw their negative consolidated net results increase by 1,280% between 2019 and 2020, results which have undoubtedly worsened over the past two years due to Covid-19 and the war between Russia and the United States. ‘Ukraine. What to do to get rid of this iron ball that paralyzes the state and prevents any economic recovery in the country? (Illustration: government palace in Tunis).
Out of a total of 111 public companies in Tunisia, 81 experienced, in 2020, negative consolidated net results estimated at – 2,455.26 million Tunisian dinars (MDT) against – 177.93 MTD in 2019, i.e. an aggravation of 2,277, 33 MTD corresponding to 1,280%.
According to a report on the economic and financial situation of public companies published by the Ministry of Finance on Monday, January 9, 2023, this sharp drop in the consolidated net result for the year 2020 of the 81 companies concerned is due to the recording of results of operating losses of approximately -1,160.7 MTD in 2020, against 662.75 MTD in 2019.
Given the crisis in which our country has been languishing for two years due to the Covid-19 pandemic and the Russian-Ukrainian war, one can imagine that these catastrophic data have worsened during the years 2021 and 2022. And what does the state, in the meantime? He counts the losses and waits for Godot…
The decline in liquidity and increase in bank overdraft
According to the same report, there was a drop in the liquidity of public enterprises in 2020 compared to 2019, worth 325.71 MTD, which is equivalent to 9.1%, due to the significant drop in the liquidity of most public companies due to the decline in their activity. The monthly outstanding balance of bank deposits fell by 395 MTD over the 2019-2021 period against the increase in bank overdraft of 498 MTD.
The deterioration of the financial situation of public enterprises and the lack of sufficient liquidity has led to their inability to fulfill their obligations towards the State in terms of payment of tax and customs debts and loans granted to them by the State, recognizes the Ministry of Finance in its report.
The deterioration of the financial situation of these public enterprises also leads to an increase in transfers of direct subsidies from the State to enable them to survive, especially since some of them are encountering difficulties in meeting their obligations, which requires in most cases the intervention of the State through their recapitalization, further indicates the report of the Ministry of Finance, which specifies, moreover, that 53 of the 81 companies concerned by the report recorded a negative net result with a total of 2,643.27 MTD.
The Tunisian Petroleum Activities Company (Etap) ranks first among losing companies with a negative result of 407.07 MTD, followed by the Cereals Office with 340.59 MTD, the Gafsa Phosphate Company (CPG) with 293.25 MTD, the Civil Aviation and Airports Office (Orca) with 245.89 MTD, Tunisair with 233.97 MTD and Transit with 219.2 MTD.
Hot potatoes, who to pass them to?
The report of the Ministry of Finance does not say what it intends to do with these hot potatoes or to whom it intends to pass them, knowing that the solution of privatization, total or partial, is not even seriously conceivable, because it does not It is not only categorically rejected by the Tunisian General Labor Union (UGTT), but the President of the Republic Kaïs Saïed is also firmly opposed to it. Did he not repeatedly express his refusal to privatize public enterprises, as during his meeting on November 16, 2022, with the Minister of Social Affairs, Malek Zahi, when he affirmed that he was “against the abandonment of the social role of the state because the right to a decent life, education, health, and other rights are not subject to the criteria of profits and losses” while advocating the reform of ailing public enterprises and “the pursuit of all those who work to make them go bankrupt”.
Who are these criminals whom the Head of State designates for public condemnation and intends for legal proceedings, if not the countless senior executives of the State who have succeeded one another at the head of these public companies over the past twenty years?
That’s a lot of people to punish, but beyond the populist statements that pit Tunisians against each other, and which are no less criminal, what could this bring to Tunisians?
Not much, especially since privatization, if considered, would not even be profitable, given the near bankruptcy of most public companies, which all suffer from chronic bad governance and endemic overstaffing. How many people to lay off and how many protests are in sight? Enough to discourage the most liberal of state clerks…
