News (15)

KPTU wins termination of contract for Seoul metro Line 9

Halfway through a 10-year deal, South Korea’s capital local government decides to put an end to its contract with French private operators RATP Dev and Transdev after negotiations over renewed contract conditions failed. The announcement, on 18 January, came shortly after members of the Korean Public Service and Transport Workers’ Union (KPTU), a PSI and ITF affiliate, made public their intention to go on strike.

Source: PSI

Global Labour Remunicipalisation workshop

A growing body of research and documentation shows that cities, communities, and in some cases states, are increasingly bringing back public services from private to public ownership due to the failure of privatization to keep its promises in term of cost effectiveness, service quality and user access. PSI recently held a workshop bringing together trade unions and allies from around the world to share experiences of remunicipalisation and strategies for bringing public services back in-house.


BPE, EFCC to block money laundry in privatization exercise

The Bureau of Public Enterprises (BPE) is to collaborate with the Economic and Financial Crimes Commission (EFFC) “with a view to blocking laundered money from the privatization program.” Ibrahim Mustafa Magu, the executive chairman of the EFFC, said “we will be willing to support you against any threat that will discourage investors from coming into the country, and in order to achieve this I think we need to establish a common desk for a seamless synergy.” He “assured that EFCC was ready to carry out due diligence on any entity that showed interest in the purchase of government assets in order to prevent corrupt elements from using the privatization process as a means of laundering illegally acquired funds.”

Source: Vanguard News Nigeria

Angola’s Sonangol to sell subsidiaries and non-core stakes

As part of an extensive three-part privatization program, the state oil company Sonangol wants to privatize 52 companies and two non-core asset portfolios by the end of next year. “The non-core subsidiaries and non-core stakes of Angolan state oil and gas company Sonangol will be part of the first and second phases of the country’s privatization program, an official said… The president of the Institute of Management of Assets and State Participation (IGAPE), Valter Barros, said that the sale of those Sonangol companies, between the last quarter of this year and 2020, will be followed by insurance, telecommunications, banks and transport companies, among others. Barros said the hotel and tourism sectors will also be divested (in particular hotel units set up for the African Cup of Nations in 2010), the management company of the Special Economic Zone (Viana) and companies located there, as well as companies in the agricultural sector (state farms and agribusiness industries).”

Source: Macauhub

Brazil to create privatizations secretariat

Future Economy Minister Paulo Guedes told reporters Brazil will establish a privatizations secretariat under far-right president-elect Jair Bolsonaro. “Guedes did not specify whether the secretariat would report to any cabinet minister or be autonomous.”

Source: U.S.

Strike in public service, response to wrong policies adopted by government

A breakdown in wage negotiations between the government and the unions over a civil service pay rise led to a November 22 strike. In a statement, the UGTT “said the strike is aimed at defending public institutions and the quality of the services they are supposed to offer. This mobilization also aims to enable the public service to recover its pioneering role in the socio-economic field, said the same source, which emphasises the commitment to the decision on the regularization of the situation of all workers who have a precarious job quoting, in particular, construction workers.”

Source: TAP

March against the privatization of Eskom

The National Union of Mineworkers (NUM) and the National Union of Metalworkers of SA (NUMSA) marched to the Union Buildings in Pretoria against the privatization of Eskom and the sourcing of power from independent power producers, among others. “Their mission and mandated task is to break up Eskom, privatize it, renew the looting contracts of cost-plus mines and justify IPPs [independent power producers]. In our view, this agenda is linked to the corrupt political elite who take South Africans for a ride,” said NUMSA general secretary Irvin Jim.


Morocco to sell La Mamounia hotel, power plant to cut 2019 budget deficit

The government plans to privatize the Tahaddart power plant south of Tangier and the five-star La Mamounia hotel in Marrakech to plug a budget hole. “The government did not approve the sale of several other public companies, including CIH bank, one of Morocco’s best performing banks. But the government has not ruled out selling its 30 percent stake in Maroc Telecom. The spokesman said the government would restructure state firms and open more of them up to private investors.” Experts often advise against making long-term privatization decisions under the pressure of short-term budget needs, since cost-benefit assessments can be tarnished.

Source: AF

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