Relations between Madagascar's public authorities and the formal private sector have reached an unprecedented low. The Groupement des entreprises de Madagascar (GEM) announced the immediate suspension of its representatives' participation in all consultation mechanisms with the State, as well as public-private dialogue with authorities—an exceptional decision marking a rupture in institutional relations between the two parties. In a statement released on June 24, the business organization specified that this measure concerns notably its representatives on the board of the Caisse nationale de prévoyance sociale (CNaPS), as well as all other governance structures where private sector representatives sit alongside administration officials. GEM affirmed it would maintain this position until guarantees of effective rule of law and equal treatment are restored. At the origin of this decision lies the "CNaPS-SMGD affair," which implicates five administrators representing GEM on the CNaPS board. The matter concerns an 11 billion ariary loan granted by CNaPS to the Société municipale de gestion digitale (SMGD), a significant portion of which was not repaid, leading to an investigation into suspected irregularities and mismanagement. The investigation resulted in the incarceration of CNaPS's former director general, judicial supervision of several officials, while former Antananarivo mayor and ex-minister of territorial planning Naina Andriatsitohaina, considered a key figure in the case due to his SMGD connections, faces an arrest warrant after being declared a fugitive by justice authorities. In its statement, the business organization affirmed support for independent justice principles and believes anyone involved in judicial proceedings must answer for their actions. However, it deemed unacceptable that prosecutions concern only GEM representatives, while other board members face no similar procedures. The group indicated it petitioned authorities in March 2026 for a dismissal within three months. According to the statement, this request remained unanswered despite multiple approaches to competent authorities. While names of implicated GEM representatives were not cited, it should be noted that one principal figure sought in this affair, Naina Andriatsitohaina, is an emblematic figure of Madagascar's business organization, serving as one of its three honorary presidents after previously holding its presidency. Although GEM's statement makes no connection between his status within the group and the announced decision, this coincidence inevitably places the organization under scrutiny in what has become one of the country's principal political-judicial cases. Beyond this judicial procedure, GEM expresses deeper concerns about public-private dialogue functioning. The organization cited several emblematic cases illustrating, according to it, the exhaustion of consultation mechanisms, notably the decree on minimum hiring wages (SME), still awaited despite an agreement reached between social partners in February, as well as certain value-added tax (TVA) questions. For business leaders, displayed commitments must now translate into concrete actions to restore confidence now severely shaken. The delicacy of this affair rests indeed on the place occupied by the formal private sector in the national economy. It represents nearly half of gross domestic product, ensures the vast majority of declared employment, and constitutes one of the country's principal sources of tax revenue. A prolonged paralysis of institutional dialogue could thus complicate economic reform implementation, slow several investment projects, and send a signal of uncertainty to international economic partners.