During his meeting at The "Leadership & Management Development Center", Minister of Investment calls for:the necessity of linking payment rate against production volume for the 8 Holding companies related to Ministry of Investment
January 4, 2015 at 17:01
For the continuation of the effortsdone to update&reform Egypt's investment climate, and re-arrangementofeconomic environment side by side with our current situation demands, and according to the Government's vision for the management of the current stage with an elaborated system skips the accumulated challenges and accelerates the real change to achieve positive&touched results, directly and indirectly in parallel with the legislative reform of the laws related to Investment system and its associated activities; the Ministry of investment is determined on a complete reform and restructuring for the owned-state public companies and to develop a strategy to exploit its un-used assets.
In this context,Dr. Ashraf Ibrahim Director of "Leadership & Management Development Center" organized a meeting headed by Dr. Ashraf Salman "Minister of Investment"with theeight heads of the holding companies and in the presence of thefinancial advisors enrolled in the "EgyptianFinancialSupervisory Authority"with co-meetinga number of Official Delegatesfrom the Ministry of Investment.
Totally, all the offices of the financial consultants enrolled as advisors in the "EgyptianFinancialSupervisory Authority "had been also invited to attend this meeting to get their vision and to benefit from their expertise in providing an initial&preliminary assessment about the situation of 125 affiliated companies considered as subsidiaries to the 8 holding companies related to the Ministry of the investment, this will pave the way todevelopthe needed performance indicators to be used as a commontoolfor measuring the performance of these companies, and in collaboration with "Leadership& Management Development Center"supervised by the ministry, the implementation of the stated plans will be executed.
In his speech, Minister of Investment stressed on the intention of his ministry tocreatea suitable investment climate for private investment and foreign direct investmentside by sidewith great attention to the reconstruction& reform delivered to the owned-state companies, either they are public sector companies or joint ventures companies, as they are totally contribute with a rate representsup to 15% of GDP.
He also assured on, the ministry's full support to improve the current situation of these companies to maximize the exploitation of its available huge resources, and to maximize the benefitson its returns, this will return back to the country and to the staff working in these companies, this could be achieved bygetting use of the advantage of presence of the advisory offices with theirexpertise, addressed separately by the neededexpertiseof each company to keepthese holding companies in appropriate situation in the context of accelerating the implementation of the restructuring plan.
"Dr. Ashraf Salman" Minister of Investmentsaid: The plan to restructure the companieshad already been announced by the Ministry of Investment to improve performance and improve staff conditions, through the re-evaluation of companies aided by financial advisors, that can maintain the state-owned assets and to develop real performance indicators describe accurately the current status of these companies between the global ones, this will be achieved by the nomination of all unused assets to overact with itsoptimal utilization,and propose for new co-agreementswiththe private sector, with a complete implementation and adoption of the performance indicators on all companies, for the sake of restructuring to execute these studies and plans done on these companies in accordance to the previous data.
The Minister added:Today's meeting comes in the framework of the stated implementation plan, noting that; it is necessary to change the old philosophy of dealing with owned-state companies as it should be managed in a professional way, in order to keep-onour country funds and to perfectly invest the Egyptians' money "the original owner of these companies", and contribute inlessening the heavily added burden on the public budget as a result of either the debtsor burden of carrying new investmentson these companies.
Ashraf Salman, Minister of Investment also pointed to the importance of activating the profit by adopting the mechanism of linkingworkers' promotion& benefitsby production, explaining that the application of this principle consequently will be an added value in the improvement of the financial situation of these companies and motivate employees to increase their production rate and can transmit this positivecompetition spirit between the 8 holding companies, he also declared for the start of training programs for various companies each in its respective field, followed by carrying on a transformative training programs to take advantage of the huge human idle capacities, side by side with an important training specialized for the principles of reading and understanding the financial statements andthe annual budgets with its financial indicators numbersand its indicative percentage, to let those workers be involved intaking their responsibility in the advancement of their own companies.On the other hand, a number of heads of companies pointed on the necessity of workers' involvement inchanging the corporate culture with its status queue and dealing with the budgets' numbers that will contribute to the revitalization of work and production system and contribute to the perfect exploitation of companies'assets, taking into consideration that there is a monthly follow-up about the performance of each holding company supervised by the Ministry of Investment, which makes these companies eager to prepare its successfulimplementation plans for the production and training schedules.