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Initiating an establishment committee to launch “Palestine non-governmental pension” company

2011-12-05

A group of leading companies formed yesterday, an establishment committee for a public shareholding company that is planned be created under the name "Palestine non-governmental pension". The committee includes all the founders, whereby  a technical committee were selected, that shall update the feasibility study and the action plan for the new company, as to display these documents on the establishment committee at its next meeting at the end of next January. The establishment committee is comprised of: Palestine Investment Fund, Palestine Development and Investment "PADICO Holding", Palestine Telecommunications Company, Bank of Palestine, Al Quds Bank, Arab Islamic Bank, the Palestine Islamic Bank, Al Rafah Microfinance Bank, National Insurance Company,  Trust International Insurance, Ahliea Insurance Group, Massar International,  National company for paper manufacturing , The Arab Palestinian Investment Company “APIC”,  Jerusalem District Electricity Company and Palestine Real Estate Investment "PRICO", in addition to a number of companies.

This came at the conclusion of a meeting of representatives of these companies in Ramallah yesterday,  which they discussed a number of issues and legal and technical requirements necessary for the establishment and licensing  the company,  and enable it to operate its functions according to law and sound  management.

Hashim Al Shawa, the Board Chairman and General Manager of Bank of Palestine, who had initiated this project, started the meeting by highlighting the latest developments and discussing future steps necessary to establish the company. Al Shawa presented the results of a visit by the Bank of Palestine to the Republic of Chile, with the participation of Dr. Atef Alawneh the  Coordinator of the Preparatory and Monitoring Committee, where the delegation met a number of officials and heads of the three largest companies for the management and development of pension funds of the private sector in Chile, in addition to the President of the International Union for private sector funds and the Association of Chilean enterprises , where they had summarized to the delegation their expertise in establishing and managing private sector pension funds. Some Chilean parties expressed their willing to participate in the capital of the new company and assist in providing the necessary information, expertise and advice for the establishment and development of the company in addition to train Palestinian cadres.

 Participants stressed on the need to complete all the details of the legal aspect, and the company"s ability to exercise its role within a clear and explicit legal environment, as well as broaden the dialogue with the staff in the private sector and non-governmental sectors to demonstrate the benefits and advantages of this system compared to other various available systems. Participants recommended an intensive financial and pension awareness campaign in the private sector, and chose a technical committee to help Alawneh in the provision o required documents, economic and financial feasibility for the establishment and registration of the company, in addition to its work plan for the coming years such as: Memorandum of Association, Company’s Act, feasibility study, Action Plan, and other documents. The committee allocated $ 200 thousand to help finance all the required activities by the Technical Committee, as all other issues to be discussed and agreed upon at the next meeting in the light of availability of legal requirements, such as the capital and the share of each institution and other issues. It should be noted that it was agreed that each’s stake should not exceed 10% of the capital.