The Parliament will discuss proposals for more transparent governance of state and municipality owned enterprises
The Ministry of Economy and Innovation has submitted legislative amendments to the Parliament for consideration, aimed at strengthening transparency and governance standards for state and municipality owned enterprises and ensuring greater accountability to the public.
“State and municipality owned enterprises must operate in accordance with the highest principles of transparency, accountability, and good governance. Therefore, we are working to ensure that these standards are clearly established in legislation and applied equally to all large and public–sector enterprises,” says Minister of Economy and Innovation Edvinas Grikšas.
The amendments to the law aim to bring corporate governance more in line with international best practices and the recommendations of the Organisation for Economic Co–operation and Development (OECD).
Under the proposed regulations, the municipal executive body would be required to establish key performance indicators for large municipal enterprises and prepare letters of expectation. It is also proposed to strengthen the independence of members of collegial bodies – by limiting their participation on boards and establishing additional requirements that would help ensure objective decision-making.
The proposed amendments to the law also suggest establishing a one-year period during which politicians and political appointees would be barred from serving as members of the governing bodies of state or municipality owned enterprises in the sectors they oversee. The amendments also propose reducing the administrative burden by eliminating some redundant reports and their evaluation procedures.
The new requirements would apply to state–owned enterprises and large municipal enterprises.
Amendments to the Law on the Management, Use, and Disposal of State and Municipal Property will be considered by Parliament committees.