Public Officials Appointed to Lead State-Owned Enterprises: A Violation, Report

Public officials should not hold any leadership roles in state-owned enterprises in Moldova. Ex officio appointments to boards of directors and managerial positions should be gradually and actively eliminated by the Public Property Agency, ensuring effective competitive processes in line with current regulations. This is one of the recommendations in the report of the Independent Anti-Corruption Advisory Committee (IAAC) regarding the legal and regulatory status of state-owned enterprises in Moldova, IPN reports.

IAAC co-chair James Wasserstrom stated that the appointment of public officials to leadership positions in state-owned enterprises (SOEs) is a violation of international standards and practices. Among the identified gaps is the fact that individuals with criminal records can hold any leadership position in state-controlled enterprises, which is "surprising", according to Wasserstrom.

According to IAAC co-chair, audit and oversight committees are important for monitoring internal affairs and should report not to the state-owned enterprises but to the Public Property Agency.

Anti-corruption expert Iulian Rusu stated that Parliament should strengthen the standards and criteria for candidates to the position of general director of state-owned enterprises, addressing gaps such as appointing individuals with criminal records, even if inactive. "It is in the interest of the management of state-run enterprises to have a fair, transparent, qualification-based process for hiring these individuals", said the expert. Iulian Rusu reiterated that public officials can be employed in leadership bodies, such as boards of directors, although "this is a legacy, continued in state-controlled enterprises".

Another recommendation highlighted in the report concerns the National Integrity Authority, which "should fill vacant positions and prioritize the assessment and verification of asset and interest declarations submitted by top management representatives and members of boards of directors of SOEs."

The Independent Anti-Corruption Advisory Committee (IAAC) is an independent body composed of international and national experts, established in june 2021 by presidential decree. The IAAC's mission is to analyze systemic issues of high-level corruption affecting state institutions and to improve the capacity for implementing anti-corruption measures.
 

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