|Program Description||RESPONSIBILITIES OF THE PRIVATIZATION ADMINISTRATION|
The Privatization Administration possessing public legal entity and an exclusive budget, reporting directly to the Prime Minister has been established on 27 November 1994 with the Law 4046. The primary duties of the Administration are stated as follows ;
a) To execute the decisions of the Council,
b) To make decisions on pertinent issues and to implement the necessary procedures in line with the rights and duties granted and delegated by the Council,
c) To present proposals to the Council for the inclusion of organizations into the scope of the privatization or returning the organizations that have been included in the scope of privatization back to their former status, or orienting the preparation of those organizations that are within the scope of privatization when required,
d) To realize the implementation of all necessary procedures for the privatization of the organizations and to execute the follow-up and coordination of the activities for the preparation of those for privatization,
e) To decide whether or not to transform those organizations which do not maintain the status of an incorporation into joint-stock companies,
f) To determine the amount of stock capital of organizations, to make necessary arrangements for their establishment, merger or division; to determine the principles for the properties and the rights and obligations; to make all arrangements for the accounts and activities of the organizations that are under the status of an incorporation or transformed into a joint-stock company and to take necessary precautions to ease such procedures until such time that public shares in those organizations drop below 50% (Fifty Percent) and to do the same for others until the date of assignment and/or transfer as a result of the privatization,
g) To conduct and to implement every type of procedural operations related to privatization that are essential for privatization,
h) Within legal limitations, to make arrangements for the financial, administrative and legal structures of organizations,
?) To make decisions on resource utilization, acquisition and leasing of immovable properties or economizing on those immovable properties by any other agreement; on obtaining domestic and international credits; on recruiting or reducing personnel under the principle of increasing productivity, working conditions; on demands and requirements for the temporary assignment of personnel overseas, for those organizations that are within the scope of privatization program,
i) To present proposals to the Prime Minister for assignments and appointments to and for the withdrawal from the chairmanship and membership of the board of directors of organizations, of auditing and liquidation committees, and from general managerial positions for those organizations under the scope of the privatization program separately from the organizations to which they belong and not deemed necessary for transformation into an incorporated company, and of the managerial positions in their administrative units thereof. (A four year university degree is a prerequisite to be eligible to receive appointment to these positions),
j) To determine the quantity and value of every type of securities and any other negotiable instruments to be issued through the Council's decision,
k) In the event of investing capital in kind in organizations, to evaluate or have evaluated/appraised such capital,
l) To manage the Privatization Fund,
m) To conduct all types of research activities, project studies, advertisements, promotion, public relations, financial auditing and legal, technical, administrative and financial evaluations and/or to have such works conducted by assigned consultants as and, when needed.
n) To provide loans to organizations when required for privatization and to determine the interest rates and the terms and conditions for such financing provided by the Privatization Fund under the condition that the interest applicable to such funding shall not be in excess of the highest interest rate applied by public banks,
o) To perform other duties defined by the laws and other legislation.
The Administration may authorize the organizations in the privatization program in subjects referred to in paragraphs (a), (b), (h), and (i) where it is deemed necessary and beneficial by the Administration, provided a clear definition of principles and methods of such authorization be outlined.
TARGETS OF THE PRIVATIZATION PROGRAM
The major targets of the privatization program are primarily:
- to minimize state involvement in the industrial and commercial activities in the economy,
- to provide legal and structural environment for free enterprise to operate,
- to decrease the financial burden of State Economic Enterprises on the national budget,
- to transfer privatization revenues to the major infrastructure projects,
- to expand and deepen the existing capital market by promoting wider share ownership,
- to provide efficient allocation of resources.