State Portfolio Enterprises in the Democratic Republic of Congo (DRC) struggle to create wealth and contribute little to the country’s economy. Despite large workforces which weigh heavily on public finances, these companies have become a burden on the public treasury.
Faced with this worrying situation, the Public Expenditure Observatory (ODEP) and COGEP organized a two-day workshop, from September 14 to 15, 2023, on the mechanisms for enriching the law on organization and management of the State Portfolio.
This workshop also brings together financial control institutions such as the General Inspectorate of Finance (IGF), the Court of Auditors, the National Financial Intelligence Unit (CENAREF), COPIREP, as well as representatives of civil society.
In his introductory speech, the Chairman of the ODEP Board of Directors, Florimond Muteba, painted a gloomy picture of the situation. He points out that state-owned enterprises are supposed to create wealth, but have become a financial burden on the state.
“Public companies are today a burden on public finances. They are subsidized instead of contributing to the public treasury by generating additional revenue to the taxes collected by the financial authorities. We also note that the former passive agents have become agents active and receive a monthly salary”, he laments.
The objective of this workshop is to propose improvements to the 2008 law in order to increase the contribution of public enterprises to wealth creation. This involves reviewing the law relating to the transformation of public companies in order to avoid the dysfunctions observed in their management. The various financial control institutions and civil society are also involved in this reflection.
During this workshop, ODEP and COGEP will present to participants a proposed law drafted by their respective structures. The comments and amendments proposed by the participants will be taken into account in order to enrich the law on the management of state public enterprises.
It is important to emphasize that public enterprises in the DRC have become entities that hinder revenues and cause loss of opportunities, which poses a real problem for the governance of natural resources.
This workshop is also an opportunity for participants, in particular representatives of the Ministry of the Portfolio, the Superior Council of the Portfolio, the Court of Auditors, the General Inspectorate of Finance, CENAREF, the EITI and the civil society, to work on the implementation of the transparency and fight against corruption project in the management of State Portfolio companies. This project aims to support and advocate for a law on transparent management of public companies and the appointment of public officials.
In conclusion, this workshop aims to find solutions to improve the management of public enterprises in the DRC so that they can truly contribute to the creation of wealth in the country. It is also about promoting transparency and fighting corruption in this crucial sector of the Congolese economy.