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2007 Assessment

Algeria: Integrity Indicators Scorecard

Algeria: Integrity Scorecard Report > Sub-Category: Privatization
Indicators   Score
50 Is the privatization process effective? 33
51 Can citizens access the terms and conditions of privatization bids? 50

Indicator and sub-Indicator Details

50 Is the privatization process effective?
 
  50a: In law, all businesses are eligible to compete for privatized state assets.
 
Score: YES  NO score
  Comments: According to the above-mentioned law, all state-owned enterprises are subject to the same conditions and regulations of the privatization law.

References: Ordonnance n° 01-04 du Aouel Joumada Ethania 1422 correspondant au 20 août 2001 relative à l'organisation, la gestion et la privatisation des entreprises publiques économiques. Chapter 3 General Dispositions with regards to privatization

  50b: In law, there are regulations addressing conflicts of interest for government officials involved in privatization.
 
Score: YES  NO score
  Comments: While the regulations for privatization do not regulate conflicts of interest, the above mentioned articles of the law define the various acts of using public resources for private gain. These acts are to be punished with imprisonment between two and ten years and a fine between 200,000 and 1,000,000 dinars.

References: Law No. 06/01 for the prevention and the fight against corruption from 20 February 2006. Articles 29 - 33. [ LINK ]

Peer Review Comments: There are no legal regulations addressing conflicts of interest for government officials involved in privatization.

  50c: In practice, conflicts of interest regulations for government officials involved in privatization are enforced.
 
Score: 100  75  50  25  0  score
  Comments: "Conflict of interests are usually not regarded upon. The higher the authority of the involved ministers, the less likely it is, that the issue will play a role in the process."

References: Interview with former member of parliament. Date: August 2007.

Peer Review Comments: No such cases.

51 Can citizens access the terms and conditions of privatization bids?
 
  51a: In law, citizens can access privatization regulations.
 
Score: YES  NO score
  Comments: Privatization process are usually kept secret. Citizens are not allowed to access to the process. The only entity that can participate in the process, but which does not represent individual citizens, is the General Union of Algerian Workers (UGTA). In the privatization process it represents the interests of its members. Though some pro forma information is provided over the internet, such information does not provide a clear picture of the whole process.

References: Ordonnance n°01-04 du Aouel Joumada Ethania 1422 correspondant au 20 août 2001 relative à l'organisation, la gestion et la privatisation des entreprises publiques [ LINK ]

Peer Review Comments: Privatization rules and companies to be privatized are available on the Internet.

Peer Review Comments: In law, citizens can access privatization regulations.

  51b: In practice, privitizations are effectively advertised.
 
Score: 100  75  50  25  0  score
  Comments: "The advertising and the conditions of the submission should appear in at least two daily newspapers. But the citizens learn relatively little about the process of privatization, which is in the hands of the government and the minister, who is in charge of the operation. Often the citizens learn about the transaction, when it is finalized."

References: Interview with a former member of parliament, who wishes to remain anonymous. Date: August 2007.

  51c: In law, the government is required to publicly announce the results of privatization decisions.
 
Score: YES  NO score
  Comments: The government is required to publish the planned privatization of a state-owned company in at least 2 daily newspapers. The regulation is defined in the 1995 executive order, and reaffirmed by the executive order of 2001.

Article 18.  Pour chaque opération de privatisation envisagée, le conseil publie, dans au moins deux quotidiens à diffusion régionale, nationale et/ou internationale, à deux reprises au moins et à sept (7) jours d'intervalle au moins, les détails de la méthode de privatisation, les conditions de l'appel d'offres, le cas échéant, et la date de clôture des soumissions. En outre, le conseil assure la publicité de l'opération de privatisation par les moyens audiovisuels et l'affichage dans les chambres de commerce.

References: L'ordonnance 95-22 of 26 August 1995 Article 18

Ordonnance n° 01-04 of 20 August 2001 Minister of Finances JO N° 47 of 22 August 2001, Page 7 Article 35

  51d: In practice, citizens can access privatization regulations within a reasonable time period.
 
Score: 100  75  50  25  0  score
  Comments: "Citizens are not allowed to have access to the records, which are confidential and which contain information about decisions by different ministries."

References: Interview with a member of parliament, who wishes to remain anonymous. Date: August 2001.

Peer Review Comments: Information concerning privatization is available on the Internet.

  51e: In practice, citizens can access privatization regulations at a reasonable cost.
 
Score: 100  75  50  25  0  score
  Comments: "Ordinary citizens usually do not have access to such records."

References: Interview with former member of parliament, who wishes to remain anonymous. Date: August 2007.

Peer Review Comments: Information is available on the Internet.

Peer Review Comments: Yes, they can.

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