A public entity with an entrepreneurial nature
Sociedad Estatal de Participaciones Industriales (SEPI) is an entity belonging to the Spanish state-owned corporate sector, and is attached to the Second Vice Presidency - Ministry of Finance and Public Administration, and is directly attached to the Minister.
It was created in 1995, by Royal Law Decree 5/1995, on June 16th, which was validated on January 10th, 1996 by Act 5/1996 for the Creation 18.02.09
Its creation took place within the framework of the process for the reorganization and modernization of the state-owned enterprises, in order to manage the industrial shareholdings owned by the State which came from the former entities Instituto Nacional de Industria (INI) and Instituto Nacional de Hidrocarburos (INH), which had been liquidated by the same norm.
Its activity is governed by private law
In its activities SEPI is governed by private, civil, mercantile and labor law, without prejudice of those matters on which the General Budgetary Act is of application.
It has its own budget, which is part of the General State Budget, from which it may receive contributions
Since 2006, after the passing of Act 20/2006, on June 5th, SEPI and those companies in which it has a majority participation can receive contributions from the State General Budget, as well as to raise funds in domestic and international markets, through the issue and placing of fixed income securities, which enjoy the guarantee of the State.
The changes introduced by Act 20/2006 in Act 5/1996 for the Creation of some State-Owned Enterprises and in the Royal Law Decree 15/1997, which also affects SEPI, changed the financial regime of this state-owned enterprise and that of its enterprises, with the objective of facilitating their adaptation, within the limits imposed by Community Law, to a new entrepreneurial era in which it was no longer possible to maintain the principle of budgetary autonomy under which it was created, once the major privatization processes carried out, mostly between 1997 and 2000, had been completed, and in order to being able to face industrial and social obligations, both existing and future.
Subject to the control of the State and by the EU
SEPI and its Group of companies are subject to the same control mechanisms which are applied to any other public-sector institution, besides other controls which result from its activities in the corporate world and those applied for privatizations:
- Financial control, through the Intervención General de la Administración del Estado (Office of the State Comptroller) and the Tribunal de Cuentas (Court of Auditors).
- Control of industrial relations, by the Commission for the Follow-Up of Collective Bargaining and the Inter-Ministerial Commission for Remunerations (CECIR).
- Specific controls for privatizations, by the Consejo Consultivo de Privatizaciones (Consultative Board of Privatizations), the Office of the State Comptroller and the Court of Auditors.
- Control by the Parliament, through informative attendances in the House of Representatives and in the Senate, and Parliamentarian initiatives.
- Control by the European Union, through the community bodies in relation with competition and industry-wide policies.