Assets of state-owned debt-generating companies likely to be transferred to Water User Associations

Chisinau, 7 June /MOLDPRES/- The economic and financial situation, as well as the prospects for the reorganization of the irrigation enterprises were analyzed on 6 June at a working meeting with director-general of the Public Property Agency (APP) Vladimir Baldovici.

"We analyzed the situation in detail and found that some administrators do not efficiently manage state patrimony, do not provide quality services and do not generate revenue to cover the current expenses of businesses," Baldovici said.

"We can no longer tolerate companies working in this format anymore," he said. He added that the government will find solutions to cover some debts accumulated in salaries. "At the same time, we analyze the possibility of passing the assets of enterprises into the management of the Water User Associations. Thus, we believe that responsibility will be much higher – according to abilities and pay for efficiency " he said.

Iurie Ciocan, director of the Reform Implementation Center, said that the government's position is definite about the role of administrators and their responsibility for economic activity and business development. "The water basins are intended for irrigation, but not for lease, generating enormous debts to state-owned enterprises. This has to be taken care of directly by the managers of the enterprises, " Ciocan said.

According to the January 2019 financial statements submitted by state-owned water companies for 2018, in some enterprises, net assets are lower than the share capital, which shows that debts exceed the assets of the company, and this determines the indebtedness of the entity at high risk of insolvency proceedings by existing creditors.

Previously, there were 20 state-owned enterprises, mostly technological irrigation stations, where the founding powers were exercised by Apele Moldovei Agency.