The Government has changed
a procedure to appoint administrative staff of large state-owned companies, thus
to provide a transparent and professional approach to this issue. This was
announced by the Minister of Economic Development and Trade of Aivaras
Abromavicius at a briefing at the Government House on January 14.
"Today, with a
decree of the Cabinet of Ministers we have changed a procedure to appoint chairmen
of major large state-owned enterprises", said the Minister.
To introduce this
innovation all 3374 public sector entities will be divided into two parts:
large companies, which are over 60 in number, and all the rest.
“A large company is
defined as that having assets worth over UAH 2 billion or having turnover
exceeding UAH 1.5 billion. Presently we enumerate over 60 such companies,” told
For these 60
companies a relevant Ministry in synergy with certain independent commissions
will be selecting the candidates. Aivaras Abromavicius noted that here would be
applied the experience of the Infrastructure Ministry, which had already placed
on its website an announcement on the selection candidates for the posts of
Directors General of Ukrzaliznytsia and the Boryspil airport - they received respectively about 200 and
transparent system there is that independent experts select the best candidates
from 2 to 5 and then recommend them to the Nomination Committee," explained
The Nomination Committee
will comprise 5 Ministers: “of economy, finance, infrastructure, coal industry and
agricultural policy". The remaining 5 members of the Committee shall be
Commission will choose one candidate and propose him/her during a Cabinet’s session, as
just the Government will
approve the heads of key state enterprises", said Aivaras Abromavicius.
stressed that these are first steps to improve corporate governance. In his
opinion, in the future all companies need to be corporatized, following western standards of such management - which is the establishment of supervisory
boards, independent directors institution. He expressed belief that "the Nomination
Committee will further approve independent members of the supervisory
boards of the mentioned companies."
are a number of applicants to assume the posts of directors of key companies, so we should approach it with professionalism and transparency. We
everything in public," said Aivaras Abromavicius.