Majlis Approves Outlines of Bill to Expedite Privatization
Under the bill -- an amendment to articles 15 and 16 of the Third Five-Year Economic, Social and Cultural Development Plan (2000-2005) -- specialized mother companies would be allowed to cede shares of their subsidiaries to private sector in line with related regulations on a proposal by the Privatization Organization and agreement of the related minister and the minister of economic affairs and finance.
The bill also scraps article 16 of the Third Five-Year Development Plan, excluding its note, IRNA reported.
"The bill is a menace to employment of workers and will downgrade government's managerial power due to weakening and dissolution of specialized mother companies," reasoned opponents of the bill.
Proponents of the bill hailed it for giving an impetus to the privatization process and facilitate the law on privatization of government companies' shares.
Minister of Economic Affairs and Finance Tahmasb Mazaheri, however, had in defense of the bill, said it would speed up privatization of state-run companies, which is one of the major goals of the third plan.
Mazaheri said privatization is a growing and developing process in Iran, requiring amendment of laws and regulations and removal of certain legal problems and mistakes regarding sale of government companies' shares.
He said 1,290 billion rials in shares of state-run companies have been ceded to the private sector since the start of this Iranian year on March 21 and ratification of the bill would help promote the process.
He assured opponents of the bill that it is not aimed to dissolve specialized mother companies, but rather, build up their power to control subsidiary companies.