Benin report - Institut Africain de la Gouvernance

CHAPTER FIVE: CORPORATE GOVERNANCE__________________________________________________________________________serious difficulties which require that it be rehabilitated before privatisation in2009.616. Several privatisation procedures were used in Benin (leasing management,assets transfer, equity participation, etc.), but without clear technical ruleshaving been laid down in this regard. Benin‟s privatisation balance sheetshows mixed results. Although the state reaped a total of 33.6 billion CFAfranc (UNCTAD, 2005), the privatisations did not involve services deemedcritical to the public, and were sometimes marred by discriminatory and nontransparentpractices. This was the case with two buyers of the oil mills, whocriticised the national authorities for not complying with the concessionagreement signed on tax benefits and the supply of grains. The same applies toSONACOP whose privatisation seems – at least according to TransparencyInternational‟s report (2003) – to have been conducted under conditions ofvery little transparency.617. Finally, it should be noted that the law prohibiting privatisation in the strategicsectors has not been repealed and is still in force. The implementation of thecurrent privatisation timetable must, therefore, begin by repealing this law.618. Though delays have been recorded in the privatisation programme, and effortsstill have to be made to rehabilitate enterprises listed for privatisation and totake stock of their assets, the government has prepared a statement specifyingthe conditions for these privatisations and announcing a programme for thenext two years. It comprises:The transfer of the industrial equipment of SONAPRA not later than 30September 2007 55 . This transfer will involve cotton producers, the staff ofSONAPRA, and the Beninese or foreign public. The enterprise will,therefore, resume its initial activity, namely agricultural promotion.According to the GPRS (2007), the state plans to set up a private company,whose majority shares will be held by private operators, to take over theginning plants.The transfer of shares held by Benin in the cement company at Onigboloafter an evaluation of its assets before 31 March 2008. The transfer will bemade after the withdrawal of Nigeria, which has transferred its shares toprivate investors. It should be done through international competitivebidding and on the regional financial market.The opening of up to 51% of the capital of Benin Telecom SA to privateoperators before 30 June 2008. This will take place after the ongoingrestructuring of the enterprise and will be done through internationalcompetitive bidding on the BRVM.The opening of the share capital of Libercom to private operators.55 The transfer has effectively been made.214