A draft law on corporate governance of state enterprises will soon be submitted to the Saeima, and deputies are looking for ways to reduce expenses in this area. The State Audit Office concluded that the boards of enterprises seem to satisfy the political elite's demand for well-paid positions, writes tv3.lv.
"Sometimes it seems that these various small capital companies satisfy the demand of the authorities for well-paid jobs," said Inga Vilka, a member of the board of the State Audit Office, in the show Nekā personīga.
Should the boards of state companies be liquidated? This question was answered by Andris Grafs, Vice President of the Baltic Institute of Corporate Governance, in the podcast Piķis un ģēvelis! on the portal tv3.lv.
Grafs acknowledged that the process of restoring the boards has not been the most successful, but noted that some improvements have been achieved — for example, the opportunities for officials to work in these structures are currently limited. However, he stated that complete liquidation of the boards is not a solution, as it would mean a return to management by officials who receive instructions from ministers.
"I see much more risk in the fact that more blatant theft will begin, scandals will arise, and political influence and competition for positions will intensify. And that is something we all do not want and is not in the interest of society. Is there a need to improve something in this system? Undoubtedly — yes," emphasized Grafs.
The expert agrees that currently too many state enterprises have boards. In many cases, they should be abandoned, but in others, on the contrary, they need to be strengthened — even if individual people are paid less, but broader boards should be formed for capital companies of state significance.
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