A. Lukashenko demands the creation of an effective management system for joint-stock companies with state participation
25/10/20120 views
25 October, Minsk /BELTA/. President of Belarus Alexander Lukashenko demands the creation of an effective management system for joint-stock companies with state participation. This was discussed today at a meeting with the President on improving the management of state shares, as reported by a BELTA correspondent.
"The system should not be a new bureaucratic superstructure that will hinder the work of enterprises; it should be a system that will be effective and benefit the state, primarily the economy," stressed the Head of State.
He noted that issues of rational use of state property should always be at the center of attention of authorities, both central and local.
The President emphasized that he has repeatedly set tasks for the government to improve the efficiency of managing state shareholdings in joint-stock companies.
"The state property management system is effective only if, firstly, joint-stock companies solve state-level tasks (focus on ensuring the socio-economic development of the country, food, environmental, and information security), and do not confine themselves to narrow corporate interests; secondly, they operate profitably, with good profitability; thirdly, they respond flexibly to changes in market conditions," believes the President. He regretted to note that, as practice shows, there are quite a few problems here in Belarus.
The Head of State noted that a good practice has developed of holding meetings before the President makes important decisions on the economic and socio-political situation in the country. Today, the issue of managing state shareholdings and improving the system of owner supervision is being considered, with a relevant draft decree available.
"Even where the state holds a controlling stake, complacency and dependency thrive. Supervisory boards are inactive, entrusting all major decisions to directors. God forbid it turns out like we recently had to deal with the confectionery industry alongside the governors of Minsk and Gomel regions, when supervisory boards became a tool in the hands of one businessman, I think, not for free," the Head of State noted. According to him, the system of interaction between state and private investors in the joint management of joint-stock companies is working extremely poorly. "It's not just working poorly. Sometimes state investors or state representatives not only collude with private individuals in their interests but become mere instruments of these private individuals' activities. Again, the same confectionery factories, and so on. In short, today ownership supervision does not meet modern requirements and needs radical improvement."
The state owns shares in 1738 open joint-stock companies. And in the supervisory board of each, there is a state representative. "But, looking at the qualitative composition of such representatives, one is convinced that these are not always the people who are needed there. Then the question arises: why did you send them there?" the Head of State asked a reasonable question. According to him, a representative should not just be the "eye of the state" but a highly professional specialist who should inform and make appropriate decisions, if necessary, on problematic issues of the OJSC's operation.
The President noted that today at the meeting, a draft decree on improving the system of state property management and increasing the effectiveness of ownership supervision is being considered. In this regard, Alexander Lukashenko said that it is absolutely unacceptable to copy the system of Western countries. At the same time, he noted that the Chinese system needs to be studied very carefully. "And if you can't come up with anything new, then at least copy a normal system and adapt it to the conditions of Belarus. But the main thing is not this. We perfectly understand what the system will be. It must be clear, defined, simple, and in no case should it be bureaucratic. Otherwise, we will create another vertical from the President, as proposed in the decree, down to the collective farm-state farm," the President said.He continued: "We need to improve, of course, the system that we have today, but we should not approach it generally, but act in the areas where it is needed and how it is needed. If we have problems at some enterprises or there are large enterprises where we need to keep a close eye, let's make decisions, and if we have them, let's introduce strong state observers who will bring benefits." "This is an important issue of managing enterprises in Belarus, primarily state-owned, strategic, and large enterprises," the President said. -0-
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