In a statement released yesterday, GEM announced it is ending public-private dialogue. The reason: what it describes as a denial of justice affecting its five representatives on the CNAPS Board of Directors.
"The GEM [Groupement des entreprises de Madagascar] suspends all forms of public-private dialogue," the employers' organization stated in a communiqué released yesterday.
According to the statement, GEM's confrontation with the State stems from what it calls a "prolonged denial of justice" affecting its five representatives on the Board of Directors of the Caisse nationale de prévoyance sociale (CNAPS). These five administrators are implicated in the judicial case CNAPS - SMGD [Société municipale de gestion digitale].
"Singled out among the twenty-four Board members, they have been subject for several months to disproportionate judicial and media treatment," the employers' organization asserts. The CNAPS - SMGD affair dates back to 2021. The National Social Security Fund granted a loan of 11 billion ariary to SMGD, which is linked to the Urban Municipality of Antananarivo (CUA). The loan had a sixty-month term with a 7% interest rate. The stated objective was to finance municipal digital projects, including parking management.
However, the mechanism sparked controversy since CNAPS is a social security body, not a bank. Moreover, loan repayments have ceased since 2024. The ongoing judicial case combines financial disputes and corruption suspicions. Figures from the former state administration appear on the list of people involved in this matter.
What GEM denounces is that its representatives are the only Board members of CNAPS facing charges. "It is unacceptable that its representatives be the only ones sanctioned for an offense they did not commit, and for facts not attributable to them," it insists, adding that in March it "had contacted authorities requesting a dismissal order within three months for this matter. Despite multiple follow-ups at all levels of Malagasy public authorities, the request remains unanswered."
Effective Immediately
GEM states it is "aligned" with Prime Minister Mamitiana Rajaonarison's discourse during the launch of the "All Accountable" program in Soarano earlier this week. "Yes to strong justice and respect for judicial independence, provided this commitment is fully realized in practice and fosters a peaceful climate, free from any stigmatization or score-settling," it adds as a caveat.
As part of this public-private dialogue suspension announcement, GEM declares, "effective immediately," the suspension of its representatives' participation on the CNAPS Board of Directors. The employers' organization is also withdrawing from the Board of "any other body, Committee, or any other governance organ of a State institution, including any public-private dialogue framework."
The employers' organization thus affirms "the maintenance of this position until conditions for effective rule of law and equal treatment are restored." It defends its decision by emphasizing that it considers the situation of its five CNAPS representatives as a "breach of equal treatment before public responsibilities, this prolonged denial of justice and its serious personal and professional consequences."
In its statement, GEM also emphasizes that it is a multi-sector employers' confederation whose members comprise twenty-two professional groupings and unions as well as seven regional groupings. A way, perhaps, to underscore its weight in the national economy. The formal private sector generates nearly 50% of national GDP. It also generates virtually all of the country's formal employment and tax revenue.
The decision announced by GEM yesterday is unprecedented but could have serious consequences. Since public-private dialogue is a cornerstone of economic governance, it allows public policies to align with on-the-ground realities. A paralysis of public-private dialogue could weaken the country's economic environment. This situation also risks sending a negative signal to foreign investors.