Tarek Metwally, deputy chairman of the Egyptian parliament's industrial committee, told reporters on Tuesday that the long-awaited government-drafted public enterprise law will be referred to the House of Representatives very soon.
"Informed sources told the committee that the law will be referred to parliament once a cabinet reshuffle is announced," said Metwally, adding that "as a result, the committee is preparing to discuss this law because of its important role in saving public sector companies from collapse."
"The public sector companies have incurred huge losses in the outgoing fiscal year, and so this law is very important to save them from collapse as well as to inject a new breath of life in them," said Metwally.
According to Metwally, public sector companies suffer from two major chronic problems: redundant employees and outdated administrative systems and production lines.
"So the law comes to address these two problems, particularly in the sector of spinning and weaving factories in terms of modernising production lines and providing scientific training for workers, as well as upgrading administrative systems," said Metwally.
Metwally revealed that the new amendments of the public enterprise law will include a complete chapter on rational governance and transparency.
"The law will obligate all companies regulated by the public enterprise law to publish all their financial and administrative statements and the results of their production operations in a way that does not compromise the commercial secrets of these companies," said Metwally, adding that "the new law will also provide incentives to encourage companies to list their shares on the stock market."
Metwally said the law will regulate eight holding companies with 121 affiliated subsidiaries operating in all kinds of businesses and employing close to 250,000 workers.
"We hope that as the government promised this law will be referred immediately following the anticipated cabinet reshuffle to extend to much-need helping hand to public enterprise companies," said Metwally.