In recent weeks, the media has reported quite a bit about decisions secretly made by "Latvijas valsts meži". However, opaque decisions also occur in other state and municipal enterprises operating with public property, writes Diena.
Slightly abstracting from whether all decisions are truly made in the interest of society as a whole, it is important to inform the public and provide reasoned and balanced information "today". One such option is the stock exchange, where the market would instantly evaluate such decisions through stock prices.
"Any secrecy regarding state enterprises should be viewed negatively. Public oversight of the market, regular reports, shareholder meetings, and investor interactions significantly reduce the space for opaque decisions. Listing on the stock exchange, in this context, serves as an effective tool for improving corporate governance - it promotes transparency, disciplines management, enhances financial openness, and significantly raises the bar for decision quality. Even if a decision is disadvantageous to one party, it should not be made in secret - it should be justified by clear, rational, and professionally substantiated arguments," says Julia Bystrova, a partner at "Alphinox".
The listing of shares on the exchange provides clear indications of how, what, and how often a company should publish information. According to Juris Grishins, the head of "Capitalia", this will contribute to increasing public awareness of what is happening in the state company. The company's management will also gain an additional "microscope" and element of control, as they will know that any significant decision or poor performance will be covered much more widely, and the public and shareholders' reactions to them will be much sharper and quicker.
