President Leonel Fernandez has announced a privatization plan for public companies that will be submitted to Congress. The proposed plan concerns the 24 companies within the Corporación de Empresas Estatales (CORDE) which could be turned into private entities and increase their capital by contributions from private, national or foreign investors.
Workers would have the right to acquire shares up to the amount of their severance benefits. Employees will be under the protection of the labor code and, along with the investors, will be responsible for the administration of the company.
The proposed legislation called the Public Enterprises Reform Bill, also requires that any profits made from benefits and dividends should be placed in a development fund. In the case of re-capitalization being unsuccessful, then the law will authorize alternative ways to their recovery by concessions, licenses for operation, or the selling of assets.