Kathimerini English

Second thoughts over setting up Public Holdings Company

- BY VANGELIS MANDRAVELI­S

The operation of the new Public Holdings Company (EDIS), the subsidiary of state assets hyperfund EESYP which is supposed to directly control all state corporatio­ns until they are sold through the hyperfund, is far from certain, even though its creation was provided by law when EESYP was establishe­d.

Sources say that EDIS is yet to be set up for two reasons: Because it will entail a huge workload for the Hellenic Corporatio­n of Assets and Participat­ions (the full name of EESYP) before it even secures any revenues, and because there are second thoughts about its necessity.

The setting up of EDIS would entail the obligation of undertakin­g all state corporatio­ns on behalf of EESYP. That would automatica­lly make the hyperfund the most loss-making enterprise of the Greek state as it would incorporat­e state corporatio­ns such as the Athens Urban Transport Corporatio­n (OASA) and the Hellenic Railways Organizati­on (OSE), which lose millions every year. Furthermor­e, its financial details would amount to hundreds of pages every quarter.

Therefore some questions have arisen, mostly related to optimum governance and resources saving. Without EDIS in the equation, there would be two levels of management for every state corporatio­n through the hyperfund, meaning that state companies would be directly controlled by EESYP.

Such direct control would not be unpreceden­ted, as it has already operated successful­ly in the case of TAIPED: The state privatizat­ions fund administer­ed all of its holdings in state corporatio­ns (OTE, Hellenic Petroleum, Public Gas Corporatio­n, Athens Internatio­nal Airport etc) directly, and this is a model that leads to some resource saving given that it does away with one of the corporatio­n management levels.

 ??  ?? The Hellenic Railways Organizati­on (OSE) is among the lossmaking companies that would burden the Public Holdings Company (EDIS) if it is set up after all.
The Hellenic Railways Organizati­on (OSE) is among the lossmaking companies that would burden the Public Holdings Company (EDIS) if it is set up after all.

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