This year in the public administration system has become the first in a series of upcoming ones, where spending will have to be cut and "tighten the belts" in order to increase defense expenditures. Against this backdrop, more attention is being paid to state enterprises - high salaries, generous bonuses, and other expenses.
Many state companies are subsidized from the budget, and those that earn in the future will have to transfer 90% of their profits back to it, reports the TV3 program "Nothing Personal." The State Chancellery proposes to introduce stricter control over such enterprises; however, these initiatives face resistance in the Saeima: some deputies are calling to reduce what they consider excessive bureaucracy and to abandon the transfer of dividends to the budget. There are also proposals to liquidate some capital companies and privatize others.
When Latvia joined the Organization for Economic Cooperation and Development (OECD) ten years ago, one of the main problematic issues was the independence of the Bureau for Prevention and Combating Corruption and the management of state enterprises. These areas hindered the country's development: state enterprises were politicized, lacking professional oversight and clear operational rules. As a result, the government had to restore the boards of enterprises that were liquidated in 2009 during the financial crisis, as they often served as places for those close to politicians.
According to OECD recommendations, it was determined that the boards should be professional and formed on a competitive basis. However, now the requirements for candidates have become so strict that only a narrow circle of the same specialists, moving between boards and councils, are applying for these positions, as was noted on January 20 at a meeting of the Saeima working group.
A reform of the management of state and municipal enterprises has been introduced to the parliament. The amendments are aimed at increasing the openness and transparency of capital companies while simultaneously strengthening state control. At the same time, during the pre-election period, deputies have developed broader ambitions - including revising the list of companies not subject to privatization. The amendments have been developed in the State Chancellery. They will require shareholders - that is, ministries - to be more active: to set clear goals for enterprises, demand accountability, and responsibility for unmet tasks. In the case of inaction by the ministry, the government will be able to transfer the capital company to another institution.
"By the end of this term, this law will be one of our main ones," said Oleg Burov, chairman of the Saeima Commission on State Administration and Local Governments.
