Transparency International – Moldova welcomes the intentions to optimize and modernize the process of providing public services, but the process of reorganizing state-owned enterprises by merger with other companies implies a series of risks. In a news conference at IPN, TI – Moldova expert Veaceslav Negruta gave as example the state-run enterprise “Registru”, which is to merge with other institutions. By this merger, the state will lose property and will delegate improper duties to an enterprise.

Veaceslav Negruta said that under the draft decision published by the Ministry of Information and Communication Technology, IS “Registru” will be reorganized by merger with such administrative authorities as the Civil Status Service, the State Registration Camber and the Licensing Chamber. According to him, it is not right for the duties of the state, including the management of databases and registers, to be transferred to a state-run enterprise. Moreover, there is another draft decision providing that the state-owned enterprises will be reorganized into joint stock companies during five years. The enterprises that who will not meet this deadline will be liquidated. Thus, “Registru” should also be reorganized into a joint stock company during a five-year period.

According to the expert, alongside conceptual ambiguities as regards the reorganization of IS “Registru”, this draft decision implies a series of legal, financial and property risk. “Risk and uncertainty areas are created, including by formulas to sell particular possessions, assets and to lay off public functionaries who know well their job and should work in the public interest, not in a future joint stock company that pursues other goals than the public ones. The ultimate goal of the joint stock company is to earn revenues,” said the expert.

Veaceslav Negruta also said that before initiating such reorganizations, it should be very clear what kind of company IS “Registru” is. Numerous reports by the Audit Office and the Financial Inspectorate reveal serious deviations in the activity of this enterprise, including difficult financial situations. There is practically no transparency and nothing is known about the procurement process, the management of the document making   process, etc. The enterprise should be first subject to an independent audit to determine the real situation at IS “Registru”.