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2007 Assessment

Jordan: Integrity Indicators Scorecard

Jordan: Integrity Scorecard Report > Sub-Category: State-Owned Enterprises
Indicators		Score
64	In law, is there an agency or equivalent mechanism overseeing state-owned companies?	100
65	Is the agency or equivalent mechanism overseeing state-owned companies effective?	70
66	Can citizens access the financial records of state-owned companies?	40

Indicator and sub-Indicator Details

In law, is there an agency or equivalent mechanism overseeing state-owned companies?

64: In law, is there an agency or equivalent mechanism overseeing state-owned companies?

Score:

YES

Comments: The Jordanian Foundation for Investment (Law #18 of 1991) is the government body that oversees its investment. However, each state-owned company has its laws and regulations. Therefore, various bodies have a role in overseeing state-owned companies; accordingly, there is no one mechanism for overseeing state-owned companies. Each enterprise is governed by its own commission, laws, and regulations.However, public enterprises are under the supervision of the Audit Bureau, Anti-Corruption Commission, and Parliament.

References: Phone interview with Mr. Faisal Tabbaa, legal consultant, Sanad Law Group, 4 December 2007

Is the agency or equivalent mechanism overseeing state-owned companies effective?

65a: In law, the agency or equivalent mechanism overseeing state-owned companies is protected from political interference.

Score:

YES

Comments: By its nature, a public enterprise is subject to political intervention. The Jordanian Investment Foundation (Law #18 of 1991) is under the control of the Ministry of Finance and its president reports to the Minister of Finance.

References: no source given

65b: In practice, the agency or equivalent mechanism overseeing state-owned companies has a professional, full-time staff.

Score:

100

Comments: The law of the Jordanian Investment Foundation specifies in Article 8 that the Foundation shall have a director and employees, and it has them in practice.

References: Mr. Mazen Saket, president of the Civil Service Bureau

Peer Review Comments: Not all staff members are professional.

65c: In practice, the agency or equivalent mechanism overseeing state-owned companies receives regular funding.

Score:

100

Comments:

References: Mazen Saket, president of the Civil Service Bureau

Article 10 of the Jordanian Investment Foundation Law #18 of 1991

65d: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies independently initiates investigations.

Score:

100

Comments: A corruption case in Magnesium Company was investigated by the authorities. The case was closed without charges.

References: Interview with HE Dr. Abed Shakhanbeh, president of the Anti-Corruption Commission, in Amman, Jordan. Interview HE Mazen Saket, president of the Civil Service Bureau, in Amman, Jordan.

for references in the case of the Magnesium Company see: [ LINK ] [ LINK ] [ LINK ]

65e: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies imposes penalties on offenders.

Score:

100

Comments: The penalties imposed are imposed through courts if the there was a conviction.

References: Interview with HE Abed Shakhanbeh, president of the Anti-Corruption Commission, in Amman, Jordan.

Can citizens access the financial records of state-owned companies?

66a: In law, citizens can access the financial records of state-owned companies.

Score:

YES

Comments: A private citizen does not have access to the financial records of state-owned companies. However, citizens can have access to the annual reports published by the companies. Also, in companies where the government owns 50% or more, the Audit Bureau can have access to the records of the company and audit it.

References: Interview with ME Mustafa Barari, president of the Audit Bureau.

66b: In practice, the financial records of state-owned companies are regularly updated.

Score:

100

Comments:

References: Interview with HE Mustafa Barari, president of the Audit Bureau

66c: In practice, the financial records of state-owned companies are audited according to international accounting standards.

Score:

100

Comments:

References: Interview with HE Mustafa Barari, president of the Audit Bureau

66d: In practice, citizens can access the financial records of state-owned companies within a reasonable time period.

Score:

100

Comments: Citizens can access published financial records. The Audit Bureau can have access to the records of state-owned companies.

References: Interview with HE Mustafa Barari, president of the Audit Bureau

66e: In practice, citizens can access the financial records of state-owned companies at a reasonable cost.

Score:

100

Comments: Because access to financial records is limited to the Audit Bureau, the question about cost is irrelevant.

References: Interview with ME Mustafa Barari, president of the Audit Bureau