The Minister of Operations acknowledges that 70% of civil companies have gone bankrupt
Minister of Operations and Vocational Formation Riyad Choud confirmed to parliament that most incorporated companies have not started their activity due to administrative barriers and poor allocation of funding.
The Minister of Operations and Vocational Training, Riyad Shaoud, confirmed on Wednesday that about 70% of the state-owned enterprises that have been founded have not started any field economic activity so far. The minister's remarks came during a joint parliamentary hearing devoted to discussing his ministry's budget.
Schwad explained to MPs that complex administrative and procedural obstacles, coupled with the absence of Le Kef funding, prevented these legal entities from being transformed into actual productive facilities capable of creating citizen-made jobs.
The official data presented revealed that the number of legally incorporated entities ranged from 120 to 230, while the number of entities that actually started only 68 companies, most of which operate part-time. Financially, the figures showed only 9 million dinars of the total line of financing allocated to this program, 60 million dinars.
The legal framework for this investment model dates back to Presidential Decree No. 15 of 20 March 2022, which was amended by a subsequent decree with the aim of simplifying the terms of incorporation and reducing the minimum number of shareholders and capital value required to start an activity.
The authorities plan to complete the launch of a digital platform for the registration of public companies with the aim of accompanying senders, facilitating procedures and resolving pending legal and financial issues.