Before being closed, the entity must complete the projects it has in progress. Of the 22 public companies of the Executive Function, there will be 15. The purpose is to make them profitable and inject resources into the State.
Closure of public companies, mergers of ministries, reduction of personnel, new work contracts and simplification of procedures, are the strategies for the optimization of the State, one of the axes of the economic program. The goal is to reduce public spending by $ 1 billion each year.
Efficient public companies
Among the measures that will be applied is that until 2021 five public companies will be closed and four will be merged.
The Coordinating Company of Public Companies (EMCO) designed the Improvement Plan that seeks efficiency, profitability and transparency. Of the 22 companies that there are so far in the Executive Function, will be 15.
Edison Garzon, manager of EMCO, explained that the purpose of the plan is “that public companies no longer use the State, but contribute to it”.
Immediately the Public Cement and Enfarma Company will be liquidated, while until 2021 they will close Fabrec, Ecuador Estratégico and Yachay. The last two must complete the projects they have in place before being liquidated.
With Tame, Santa Bárbara and Flopec the strategy is to improve their management to make them more profitable and attractive to national and international investors. In the future strategic alliances or partial sale will be analyzed.
The plan involves the disengagement of more than 1,000 employees from the upper hierarchical level until 2021.
Garzón guaranteed the payment of liquidations with all the corresponding benefits. The resources will come out of the minimum profitability that will emerge from the organizations.
In addition, this year projected a benefit for the State of $ 427 million, of which $ 204 million for savings from the General State Budget and $ 223 million for the profitability of public companies.
Reduction of advisors
A total of $ 7 million in savings will generate a 50% reduction in advisory positions at the top level, explained Raúl Ledesma, Minister of Labor.
In the Executive Function, there are 625 advisors that represent monthly expenses of $ 2’193,926.79, between salaries and benefits, the proposal is to reduce them to 365 which means $ 1’279,996.39 per month.
Ledesma affirmed that the rights of workers will be guaranteed, as will the provision and quality of social services to citizens. It will not include the sectors of health, education, justice, security and social welfare that represent 69% of public servants (339,844) out of a total of 492,683.
Modalities of contract
Ledesma informed that three of the six ministerial agreements for the implementation of the new contracting mechanisms would be signed. It is about the banana, tourist and floriculture sectors, which will have immediate application.
The head of the entity mentioned that permanent controls will be exercised so that there is no migration of stable workers, since the contracts are aimed at incorporating new personnel.
Redesign of the State
Before the end of the year there will be 15 optimizations and mergers. By 2019, eight entities will be linked and the administrative and financial area of two institutions will be anchored; and in 2020, two other agencies will form one.
Etzon Romo, National Secretary of Planning and Development, said that there will be 22 sectoral ministries “that guarantee the coherence of public management”.
One of the largest mergers will be the ministries of Hydrocarbons, Energy and Mining, which will be headed by Carlos Pérez. “The entire optimization process is linked to the National Development Plan,” he said.
Abbreviation of procedures
Within a period of 180 days, the institutions of the Executive Function must justify, economically and legally, the relevance of the current procedures.
What is not sustained will be eliminated, said Andrés Mideros, secretary of the Presidency.
He added that the economic program is geared toward the efficiency of the State and involves the participation and co-responsibility of the private sector. (I)