“A state management ‘neglected’”

Ecuadornews:

It was an irresponsible handling. The previous government did not control the fate of the public companies that it administered and the bill passes to the current management. There are gaps and accounts with red numbers that put at risk the operation of entities that generate a high public expenditure.

Each of the 21 companies has alerts in some figures. In cases like CNT, Tame and Fabrec there are striking data.

The National Telecommunications Corporation (CNT), for example, has accounts receivable from other public entities. That is to say, the State (through companies, ministries and secretariats) owes about 97.2 million dollars to the telephone company.

EXPRESO agreed to a detailed report of each state company. There it is emphasized that CNT has tried to obtain the resources owed, but until July of this year there was no disbursement from the Ministry of Economy and Finance. That, despite the fact that CNT delivered nearly 50 million dollars to the State for the surplus it receives for its operations.

Government neglect was also evident in the company Correos del Ecuador. Its evaluation shows that the entity does not have a corporate strategic plan or last year’s financial statement reports. The Public Company Coordinating Company (EMCO) does not have this information.

Another problem with Correos is the lack of documentation. There are about 3.3 million dollars in accounts receivable that cannot be recovered because there are no support texts.

To the series of buts is added the poor state of 13,000 assets of the company. The list of damaged properties responds to the lack of inspections of goods between 2016 and 2017.

In the cases mentioned, the authorities stand out, it is possible to apply corrective measures to correct shortcomings. In the Ecuadorian Oil Fleet (Flopec), however, the situation is more delicate. Your figures and vessels need urgent interventions.

The study of the company shows that Flopec has the need to replace the fleet that is about to meet its useful life in this and next year. In addition, there is a patrimonial impact of 360 million dollars for the transfer of the Monteverde Project to Petroecuador with resources from the Oil Fleet.

An equally complicated scenario Fabrec faces. The payment of salaries and wages began to be delayed in May of this year due to negative accumulations and the lack of budget execution. The company, dedicated to the design of uniforms, has pending contracts with CNEL, the National Police and Tame.

The latter is also in the list of red numbers. The state airline had to start a program of restructuring and improvement before falling into a liquidation that would have cost more than 400 million dollars to the State.

What solutions are there? Edisson Garzón, former president of EMCO, promoted a program of transformation of public companies to turn them into a holding that improves their figures in the medium and long term. His proposal, however, did not prosper after he left office in July of this year.

Now the government of Lenin Moreno does not rule out the sale or concession of public companies that are attractive to the private sector. Santiago Cuesta, secretary of Optimization, explained that the situation of each state is reviewed.

The constant failures

Indicator

Part of the expenses of the companies, as EXPRESO published in July, is not reported to the board. Each entity has a minimum that is approved without greater control.

Debts

Petroecuador, Fabrec, Tame and other public companies have cross-debts. The oil company, for fuel, owes most institutions.

Official use

Tame reported problems in service and in his finances due to the constant use of his flights for government officials of former President Rafael Correa.

Comptroller

The control body has special exams, approved this year, against the administration and management of company resources.

The oil companies

A fusion that faces obstacles

The oil companies are the worst hit by the irregular administration. Petroecuador accumulates legal processes and reports from the Comptroller General’s office for acts of corruption. This and Petroamazonas will enter into a merger process that could take more than two years because, among other reasons, there are inconsistencies in their economic reports. Petroamazonas, for example, has yet to deal with the negative legacy left by the merger it made in 2013 with Petroindustrial.

Petroecuador, on the other hand, has to face the costs of the failed works of the era of Rafael Correa.

Enami

The state needs to reconfigure

The National Mining Company is in a process of organizational restructuring. The objective is the “optimization of resources and the reorganization of internal activities”.

One of the plans of the reorganization is to liquidate the mixed economy National Mining Company which, as EXPRESO published on August 6, generates expenses for the State even though it is inactive.

Until June of this year, the Great National Mining Company spent 677,662.53 dollars. For the most part, the exit responds to salaries and wages. Currently the company has no new projects.

It is necessary to renew fleets and equipment

Astinave and the company Ferrocarriles del Ecuador have similar problems. Both need to renew part of their equipment to continue operating. Astinave requires the maintenance of the infrastructure of the South Diques Plant for 10 million dollars.

Railroads, meanwhile, have a budget deficit and need resources for the rehabilitation of railway workshops for about three million dollars. That money must be added to what is necessary for specialized maintenance of bridges and sewers.

The high performance

In few companies, the management report that EXPRESO agreed to, suggests the elimination. The stellar case is the High Performance Center. This should go to the Ministry of Sports and, according to the plan for optimizing public spending by President Lenin Moreno, this will be done. The merger of the public companies Casa para Todos and Ecuador Estratégico is also on the optimization list. The latter drags pending projects since 2016 due to budgetary delays. (I)

Source:https://www.expreso.ec/actualidad/empresas-publicas-administracion-descuido-deudas-MA2398482