Moldovan government adopts new law on regulation of state, municipal enterprises

Chisinau, 10 July /MOLDPRES/ – The administration of state and municipal enterprises will be made more efficient, following the approval by the Executive of the Draft Law on the State Enterprise and the Municipal Enterprise at its meeting today, the government’s communication and protocol department has reported.

The document regulates the founding particularities, functioning and cessation of the activity of state and municipal enterprises, the administration mode of goods transmitted to them, the reorganization or dissolution procedure, the composition, the attributions and the responsibility of the management bodies, the conflicts of interest transactions and the way of information disclosure in the concerned companies.

Among the project novelties is the setting of a minimum of MDL 5000 for the share capital of enterprises. It is also proposed to establish a special legal regime, with a distinct registration in the accounting records, for the public goods and for the social purposes, so that they can not be embezzled.

As far as the management of state/municipal enterprises is concerned, the powers of the Board of Directors will be extended. However, the body will determine the performance indicators of the enterprise and the evaluation criteria, approve the business plan and monitor its execution, supervise the litigation, approve the Regulation on the procurement of goods, works and services, and choose the competitor. 

Similarly, the duties of founders and administrators of state/municipal enterprises will be filled. Especially, the founder is to authorize the purchase of goods whose value is over 25 per cent of the value of net assets or exceeds MDL 400 thousand.

Another proposal concerns the establishment of census committees, which will conduct a six-month audit of the company's economic and financial activity, including procurement procedures.

The document also includes provisions on the voluntary dissolution of state/municipal enterprises, as at present about 320 state-owned enterprises are not active and will be liquidated. Also, it is proposed to set a two-year deadline for the reorganization of state/municipal enterprises in commercial companies or public institutions.

The local government administrated 550 municipal enterprises and central public authorities managed 250 state-owned enterprises in 2016.