Some State enterprises to be sold

The Government is taking an interest in enterprises which are still State-owned. The Enterprise Management Agency has established a special division which decides where a change of management is necessary and which enterprises must be sold. Certain managers could also be liable for prosecution if it turns out that budget funds have been misappropriated.

The Enterprise Management Agency has 1,422 companies on its books; its capital assets are over GEL 2 billion. The Chamber of Control states that of these companies only 317 ended 2009 with an income, making GEL 409 million in total, whereas their expenditures were GEL 388 million. Inefficient State companies received an income of GEL 59 million but their expenditure was GEL 144 million. Some economic analysts think that maintaining the same system is unprofitable and therefore the enterprises with poor performance should be sold by first declaring them bankrupt and then offloading them.

President Saakashvili has stated that a State enterprise which accrues no income for a year should be closed down and its management sacked, or even a criminal case brought against them. It has been decided at a Government session that State enterprises’ performance should be reviewed and some radical action should be taken concerning them.