In a statement released yesterday, the GEM (Groupement des entreprises de Madagascar) announced its withdrawal from all public-private dialogue. The decision stems from what it describes as a ‘denial of justice’ affecting its five representatives on the Board of Directors of the National Social Security Fund (CNAPS), who are currently implicated in the CNAPS-SMGD (Société municipale de gestion digitale) legal case.
The GEM states that its representatives are being unfairly targeted. ‘As the only ones singled out among the twenty-four board members, they have been subject to disproportionate judicial and media treatment for several months,’ the organization claims. The CNAPS-SMGD case dates back to 2021, involving an 11 billion ariary loan granted by the CNAPS to the SMGD, which is linked to the Urban Commune of Antananarivo (CUA). The loan, intended for digital municipal projects, has faced controversy as repayment ceased in 2024, leading to ongoing litigation involving allegations of financial mismanagement and corruption.
The GEM argues that its representatives are being penalized for an infraction they did not commit and for facts not attributable to them. Despite requests for a dismissal of the case submitted to authorities in March, the organization reports receiving no response, prompting this drastic move.
Effective immediately, the GEM has suspended its participation in the CNAPS Board of Directors and is withdrawing from all other state governance committees and public-private dialogue frameworks. The organization maintains that this position will stand until the conditions for a ‘true rule of law and equal treatment’ are restored.
The GEM, which represents a vast multisectoral network of businesses accounting for nearly 50% of the national GDP, warned that this rupture could have significant consequences. By halting this dialogue, the organization highlights existing dysfunction in public policy, citing issues like the minimum wage and Value Added Tax (VAT) as further points of contention. The move is seen as a signal of a deepening rift between the private sector and the government, potentially impacting the country’s economic climate and investor confidence.
Captured & Published at: 2026-06-25 06:00:02 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/06/affaire-cnaps-smgd-le-gem-coupe-les.html