Overview
State-owned enterprises play a fundamental role in the country. Since the dawn of the Republic, governments have created different companies to face the challenges imposed by each era. Their first developments can be found in the mid-18th century, with the production of coins, postal services, and customs, in which Casa de Moneda, founded in 1743, stands out. In 1826, the State began its business management, and by the mid-19th century, the first state-owned enterprises could be found, such as the railway between Santiago and Valparaíso and the Caja de Crédito Hypothecary. This expanded further in the first half of the 20th century with the creation of Corfo, which allowed for the expansion of public action through state-owned enterprises.
Today, the State has 20 public companies created by law and 8 state entities distributed throughout the national territory, covering various sectors considered strategic by different governments: mining, defense, transportation, industry, and services. Currently, their total equity amount to CLP $18.9 trillion, generating 47,000 direct jobs and transfers to the Treasury of CLP $ 2,6 trillion in 2023.
Among the government's main responsibilities is the management of these entities with the utmost productive and financial efficiency to expand their market development and increase their contribution to the national treasury. Since 2000, different governments have carried out reforms to advance governance and transparency in state-owned enterprises, following the standards imposed by the OECD in this area. Among the changes are the modification of CODELCO's organic statute, the improvement of corporate governance at Enap, and the creation of the Public Enterprises System (SEP). These measures have promoted the professionalization of boards of directors and executives, strengthening their independence and professionalism. Additionally, they have fostered competitive neutrality, optimized management to ensure efficient use of public resources, and aimed to maximize value creation.
Since the publication of the Transparency and Access to Public Information Act in 2008, progress has also been made in reporting information to citizens. This law mandates state-owned enterprises to provide consolidated information on personnel, including board compositions and compensation of top executives. It raised standards by requiring them to disclose the same information as publicly traded companies report to the Financial Market Commission. Today, we are taking another significant step forward in this mission.
The creation of this digital platform adheres to the latest OECD guidelines on best practices for information disclosure by state-owned enterprises worldwide. The general public will have access to a user-friendly site with consolidated financial and non-financial information about state-owned enterprises. This platform aims to highlight relevant aspects of these enterprises, including financial status, sustainability, ownership structure, and management.
Having access to this site means facilitating public access to state-owned enterprises' records, thereby enhancing public trust in the government's work and accountability.
It's important to remember that public enterprises are distinct entities from public services. Therefore, when reviewing, analyzing, and interpreting financial records, including those related to assets, liabilities, and debt, this differentiation is crucial.
Public services aim to meet collective needs without pursuing profit, whereas state-owned enterprises in Chile have their own assets and legal personality. They seek to develop economic activities by offering goods or services and are subject to the same common legislation applicable to private entities.
As a government, we are convinced that enhancing transparency with solid information is essential for citizens to actively engage in the oversight of their state-owned enterprises. This not only levels the playing field with private companies but also establishes clear metrics to evaluate their performance.
With this initiative, we are not only following OECD recommendations but also demonstrating our commitment to an open and transparent government that promotes knowledge, enabling people to engage in more informed debates.
Giving visibility to the various corporate aspects of state-owned enterprise management serves the dual purpose of enhancing transparency and finding new ways to improve their governance. We recognize that regulators, market participants, institutions, and the general public all play a crucial role in improving and maintaining these enterprises in competitive and transparent environments. This ensures that the market perceives them as reliable, efficient, sustainable, and stable.
This initiative has had the active collaboration of each state-owned enterprise, which provided the information presented on the site, all of which is also available in the Annual Reports. We have also received valuable support from Sistema de Empresas- Sep and Chile's Mission to the OECD.
I invite you to explore this site. Welcome