The Observatory for Transparency and Good Governance has called on President Kais Saied to authorise the Court of Accounts to carry out a full audit of the «Caisse des Dépôts et Consignations» (CDC). The CDC, which financed eight projects totalling 56 million dinars in contravention of prudential management rules, should be subjected to rigorous scrutiny, the watchdog said. In a statement, the Observatory said that the amounts allocated by the CDC per project exceeded the percentages set by the Minister of Economy and Finance. The Observatory also called for the dissolution of the CDC due to its inability to fulfil its missions and achieve the objectives set. This is besides the inefficiency of its management system and the lack of results of its interventions, particularly in terms of project creation and boosting local development. The observatory center underlined that the CDC's commitments in five projects totalling 74 million dinars exceeded the established rates (40%). It highlighted mismanagement linked to conflicts of interest in seven agreements signed by the CDC with companies linked to a member of the Commission. "These agreements include investment operations worth approximately 82 million dinars". With regard to investments of public interest, the Observatory found that the CDC lacked a document outlining the general financing conditions in advance, which led to the granting of funds with different interest rates to beneficiaries. In addition, the CDC granted funds in the form of convertible bonds to two companies amounting to 27 million dinars without requiring guarantees for the repayment of the loans granted. The Observatory noted that the CDC also disbursed significant funds in one go, rather than disbursing funds based on project progress. "This approach cannot guarantee that these funds will be used for their intended purposes," it said. The CDC has also contributed to the financing of certain small and medium-sized enterprises (SMEs) through numerous risk-sharing mutual funds, some of which are facing difficulties, the same source clarified. Even young entrepreneurs have expressed their dissatisfaction with the behaviour of these fund managers. The Observatory has called on the President of the Republic to authorise the Court of Auditors to carry out a full and exhaustive audit to assess the usefulness of all the investments made by the CDC, in particular the agreements with investment funds, especially foreign ones. This audit should also examine the guarantees received by the CDC and verify the sums granted to certain investment funds which were used to finance investments in France and not in the local development zones. It also stressed the need to identify conflicts of interest within the CDC and their effects and, if necessary, to refer the matter to the Public Prosecutor's Office. It also called on the Minister of Justice to consider the Court of Audit's report No. 31 of 2019. As a reminder, the last annual supervision report published by the Higher Administrative and Financial Control Authority revealed that the CDC allocated approximately 53% of all direct investment financing to four financially troubled companies, considering this approach inconsistent with the principle assigned to this structure, which is to participate in projects with a lasting economic impact. The «Caisse des Dépôts et Consignations» is a financially autonomous public institution. Its role is to safeguard the resources, funds and securities deposited with it and to use them for recruitment and investment, including various types of treasury bonds and State-guaranteed employment. It engages directly or indirectly, alone or in partnership with the private sector, in investments of various sizes in strategic economic areas, ensuring their economic viability. These include infrastructure, local development, modern technologies, the environment, sustainable development and the strengthening of SMEs, as well as investments in financial markets. The institution is headed by a Director General who operates under the supervision of a Board of Supervisors headed by the Minister of Finance.

Source: Agence Tunis Afrique Presse