Romanian economy minister wants incumbent boards of SOEs to be removed as part of planned reforms

Romanian economy minister Radu Miruta (USR) expressed discontent with the draft amendments to the law 109/2011 on the corporate governance in state owned enterprises (SOEs) published by the General Secretariat of the Government (SGG) and said that he already sent his ministry’s view implying that he was not consulted by the prime minister when drafting the document – an important part of the second package of fiscal and budgetary reforms expected to be legislated next week.

Minister Miruta wants the new regulations, namely a smaller number of board members and lower bonuses, to be enforced for all companies, not only those where the boards have to be replaced in the future, according to Economedia.ro.

Prime minister Ilie Bolojan explained, when unveiling the planned reforms, that the provision is aimed at avoiding the legal complications, but minister Miruta insists on this more radical approach. 

The minister said that he reviewed six SOEs subordinated to the Ministry of Economy, and in all of them, the board members were appointed under flawed procedures.

“Six state-owned companies were checked, and it was observed that the entire selection process of management and board members was flawed, through a procedure developed over the past 8 years, through which employees of this ministry showed the extent of their competence in personal interest, while the interests of state-owned companies were trampled on,” minister Miruta accused.

Separately, Miruta wants the new regulations to include even stricter and more transparent evaluation of the SOEs’ management, with full accountability to lawmakers.

“I proposed that for strategic companies – and it is stipulated in the law which these strategic companies are or what conditions they must meet – the evaluation be made by an independent commission, not of the ministry or [the state agency] AMEPIP, which should be appointed by the Prime Minister and which should subsequently be transmitted to the specialized committees in Parliament,” minister Miruta said.

iulian@romania-insider.com

(Photo source: Inquam Photos / Codrin Unici)