Cape Verde sets up holding company for state shareholdings

1 August 2006

Praia, Cape Verde, 01 Aug – The Cape Verdean government plans to set up, with the support of the World Bank, a holding company to bring together the State’s stakes in businesses, according to local press reports.

The holding company will be responsible for all shareholdings in all economic sectors and will be part of the new organization of the country’s Finance Ministry, which is currently under review, said daily newspaper A Semana.

A source from the Finance Ministry said that the holding would be part of the General-Directorate for Tourism, although it had yet to be decided if it would be a division of the Directorate-General for the Treasury or an office for which the director-general is directly responsible.

The measure is being technically supported by the World Bank, and, according to the same source, would not have additional costs, as it would be the result of redirecting resources from other Treasury services.

Amongst the main shareholdings of the Cape Verdean state are Enacol, A state fuel company and Inpharma and Empofrac, which are respectively a medications manufacturer and distributor, as well as power company Electra and Cabo Verde Telecom.

As part of the mechanisms designed to supervise the sue of public funds, Cape Verde’s cabinet is expected soon to discuss the new Law on Organization and Working of the Auditors Court.

This law increases the court’s powers from public companies to limited liability companies in which the state has a shareholding.

The project for creating a shareholding management unit was launched in 2001 by the then deputy prime minister, Guadalberto do Rosário.

At the time, an Institute for Management of State Shareholdings was set up, but this did not go beyond the stage of publishing statutes.

Later, the project was taken up again by Carlos Burgo, the then Finance Minister, who opted to set up an independent office of the Minister of Finance, but this move also did not go ahead, according to A Semana. (macauhub)