A new bill that will gear up the privatisation process of public enterprises has been tabled to parliament. If legislated, the proclamation will replace the existing two-decade-old law. The existing law indicates that a privatisation process will be made within the mandates of the Public Enterprise Holding & Administration Agency. The revised draft recognises the Council of Ministers and the Ministry of Finance as stakeholders in the process. The Council of Ministers will determine which enterprises will be privatised and approve their transfer to the Agency. The Council also approves the use and structure of golden share vote and veto rights for any decision deemed against the public interest. The Ministry of Finance will conduct the valuation of the assets and share values of the public enterprise under consideration and decide on the floor price for the transaction. The transactions can be made through a competitive tender, a public auction or an initial public offering (IPO) on a stock exchange or another suitable trading platform. The revised draft proclamation also requires the revenue from privatisation to be deposited in a special account designated for the Industrial Development Fund administered by the Ministry of Finance after the associated costs for the transaction are duly deducted.
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