OREANDA-NEWS. July 18, 2011. The respective document was submitted to the Cabinet to carry out consultations with civil society’s representatives and to approve it, the Ministry of Economy’s press service reports. The document examines efficiency of corporate management principles in state-owned enterprises and companies with state capital, contains analysis of financial-economic activity of enterprises with a 100% or major state capital, efficiency of administration by central authorities responsible for public property and conclusions regarding the efficiency management state-owned property.

The report contains data on top most efficient state enterprises, data on remuneration of labor of administrative boards’ members. Thanks to this report, experts, economists and all state institutions for the first time have received an analytical instrument for evaluating the state sector’s work. Some of the report’s main conclusions say that there are many shortcomings in management of state enterprises by central authorities, including direct interference into enterprises’ activity, for example, by obliging to pay for state officials’ trips and their telephone calls. Other shortcomings are de-capitalization of state enterprises, withdrawal from corporate management principles.

The Ministry of Economy suggests, among others, fixing in contracts with managers, reasons for stopping their activity, for example, if an enterprise completes a financial year with losses. It is also proposed to elaborate business plans for 3 years that should be approved by companies’ administrative boards and to restrict the state’s direct interference into state-owned enterprises’ activity.