MKEK to become private company without privatisation

MKEK to become private company without privatisation

The government has prepared a draft to change the structure and status of MKEK. Once the law passes, its name will be MKEK A.Ş. (Anonym Company). The company will be able to have foreign employees. Its wage politics, missions will be redetermined. According to the draft, the company, the precondition that it does not contradict with national security interests, will be able to produce or have them produced domestically and abroad, all kinds of weapons, ammunition, explosives and chemicals, petro-chemistry and other chemical products, machinery, equipment, materials, raw materials, tools-equipment, devices, systems and platforms for military and civil purposes. It can trade them as well.

With the legal regulation, a joint-stock company will be established as Makina ve Kimya Endüstrisi Anonim Şirketi (MKE A.Ş.) with an initial capital of 1 billion 200 million Turkish Liras, subject to the Turkish Commercial Code and the provisions of private law. The entire capital of MKE A.Ş. will belong to the Treasury. However, the Treasury's rights and powers, such as voting, management, representation and auditing based on its shareholding in MKE A.Ş., will be exercised by the Ministry of National Defence.

MKE will be exempt from 17 laws, including the Public Procurement Law. Regarding the personnel to be employed at MKE A.Ş., the provisions of the legislation regarding the recruitment of personnel to public institutions and organizations will not be applied. Foreigners who have been given a work permit exemption certificate will reside in Turkey for the duration of the employment contract, and MKE A.Ş. can work within.

FNSS