Milei's government transformed five state-owned companies into corporations.

In a decision that marks a milestone in the management of public companies in Argentina, the Government of Javier Milei, through the General Inspectorate of Justice (IGJ), an agency under the Ministry of Justice, has registered the transformation of five state-owned companies into corporations (S.A.).

This process, which includes the Corporación de Buenos Aires Sur, Télam, Fabricaciones Militares, the Empresa Argentina de Navegación Aérea, and the Administración General de Puertos, is part of a policy aimed at modernizing the structure of these entities, ensuring greater transparency in their operations, and ending decades of political use that have characterized many state companies.

With this decision, Milei's Government seeks to align these companies with the management standards and accountability typical of the private sector. Following this transformation, the five companies will be required to submit periodic financial statements and operate under the regulations governing corporations, a change that promises greater clarity in the management of their resources and stricter oversight of their activities.

This step is a direct response to historical criticisms about the discretionary use of these organizations by various governments, which in many cases turned them into political tools rather than entities serving the public interest.

Among the transformed companies, Télam stands out, the state news agency that for years has been the propaganda apparatus of Kirchnerism. Also notable is Fabricaciones Militares, a key entity in the production of defense materials, whose restructuring aims to optimize its operations.

The Empresa Argentina de Navegación Aérea (EANA), responsible for air traffic control services, and the Administración General de Puertos, which manages strategic port infrastructure, are other key players in this change. Finally, the Corporación de Buenos Aires Sur, focused on urban development in the southern area of the Autonomous City of Buenos Aires, completes the list of entities that will now operate under a new legal and administrative framework.

This process not only implies a formal change in the legal structure of the companies but also has profound implications for their management and relationship with the State. By adhering to the rules of corporations, these companies will need to prioritize efficiency and economic sustainability, which could result in a reduction of state subsidies and increased pressure to generate positive results.