The Directorate General of Financial Supervision (DGTF)is at the heart of an ambitious reform aimed at profoundly transforming the sector of public companies and institutions. The logic is clear: to bring state owned bodies and enterprises out of lethargy , strengthen their governance, modernize accounting standards and implement results-based management, with increased transparency for the benefit of the State, partners and citizens.

1.1.1. Legislative and regulatory reforms (terms of reference)

Foremost among these is Law No. 2025002 on State owned bodies and enterprises , which modernizes the legal framework and sets the guiding principles for reform. This law:

• clarifies the scope of application(public establishments, state companies, mixed companies, minority public shareholdings);
• enshrines governance based on transparency, accountabilityand results-based management ;
• imposes a reclassificationof state owned bodies and enterprises according to clear categories, facilitating management and control;
• makes it mandatory to generalize contractsbetween the State and public entities:
• assignment contracts,
• programme contracts,
• performance contracts;
• strengthens internal control and internal audit systems and the role of statutory auditors;
• calls for greater disclosureand effective accountability of management bodies.

Implementing decrees have clarified and operationalised this framework, in particular:

• the composition and functioning of boards of directors , the requirements for independent directors and specialised committees (audit, risk, etc.);
• the implementation of the State'sshareholder policy anddividend policy;
• the role and functioning of the Independent Commission of State owned bodies and enterprises (CESPI).

This body of texts constitutes a robust normative basis: it is not just a question of "regulating", but of creating the conditions for modern management and a sustainable transformation of the public portfolio.

1.1.2. Generalization of contractualization: subsidies linked to results

A central axis of the reform is the systematic contractualization of relations between the State and state owned bodies and enterprises . The objective is to pass:

• an "automatic" support logic (renewed subsidies),
• to a logic of performance-based financing.

Contracts (mission, program, performance) allow:

• define measurable and verifiable objectives(quality of service, costs, productivity, financial results, territorial coverage, investments, governance);
• Establish standardized metricsand reporting timelines.
• to link, in a transparent manner, grantsand allocationsto commitments and expected results;
• to objectify the assessment of performance and to facilitate decisions: adjustment of financing, recovery, restructuring or disengagement.

1.1.3. Control mechanisms: compliance and timeliness

To guarantee the effectiveness of the reform, the DGTF is strengthening additional control mechanisms:

• compliance control: compliance with laws, regulations, procedures, budgetary and accounting rules, procurement, transparency obligations;
• Opportunity/performance control: economic relevance of decisions, efficiency of expenditure, financial sustainability, return on investment, quality of public service.

The challenge is to ensure that public resources (BCIs, subsidies, endowments) are not only "regular" on a formal level, but useful, effective and justified .

1.1.4. Organisational and operational reforms (implementation)

At the operational level, the DGTF is carrying out several structuring projects:

• establishment of an integrated information systemfor the collection, processing and analysis of financial and operational data of public entities;
• Deployment of standardized dashboardsand performance indicators;
• Targeted restructuring: merger, demerger , transformation, rationalisation of the portfolio, in accordance with the economic interest and the public service mission;
• support for the review of business strategies(refocusing on the core business, improving profitability, optimizing assets);
• capacity building (training, guides, procedure manuals) in accounting, finance, governance, internal control.

1.1.5. Modernising accounting standards: the basis for transparency

The reform also aims to modernise the accounting of state owned bodies and enterprises : reliable, comparable and auditable accounts are essential to measure performance objectively. The DGTF, via accounting standardisation and the CNC, supports the transition to:

• a more complete accrual accountingsystem that is representative of economic reality;
• modernised auditing standards and practices, progressively aligned with the best international benchmarks (in particular for state-owned companies).

1.1.6. Purpose: efficient, transparent and useful state owned bodies and enterprises

All of these reforms pursue a common objective: to build a well-governed , transparentand results-oriented public sector capable of:

• to support the country's structuring investments;
• to deliver quality public services;
• to contribute sustainably to public finances;
• and to strengthen the confidence of partners and investors in the Mauritanian economy.