The Ministry of Finance is set to implement a strategic document aimed at reforming the sector of state-owned enterprises. This initiative will focus on improving transparency, reinforcing state ownership, and professionalizing both management and supervisory boards, as well as enhancing the administrative capacities of the state apparatus responsible for overseeing these enterprises, according to RTCG.
The forthcoming strategic document represents a significant milestone for Montenegro, as it will introduce clear ownership policies and management strategies for the first time. This document will outline strategic goals, ownership management principles and corporate governance standards aligned with international best practices.
The Government of Montenegro’s commitment to this reform will be directed toward achieving sustainable and efficient management of state-owned enterprises, with the ultimate goal of maximizing the benefits of state ownership for its citizens.
To realize this strategic goal, several operational objectives have been identified. The primary objective is to ensure efficient and effective ownership functions.
“Creating a unified ownership and management framework for all state enterprises will centralize the state’s responsibilities and authority over ownership, a practice already established in many countries. This will lead to an independent and effective ownership function, enabling clear goal-setting, performance measurement, and high-quality reporting through a consistent approach,” the Analysis explains.
Another key goal is to establish and enhance corporate governance in line with international standards across all state-owned enterprises.
This includes drafting a strategic document for corporate governance in the state-owned sector and setting up clear, transparent procedures for appointing board members. These boards will be required to have the necessary expertise and independence to safeguard the company’s interests effectively.
“Improving corporate governance standards will promote accountability, independence, efficiency, and transparency in the operations of state enterprises. A strong focus on results and accountability will necessitate the establishment of a risk management function, which, alongside the disclosure of significant information about state enterprises, needs to be further developed in practice,” the Ministry of Finance’s document states.
The third operational objective is to strengthen oversight of the state-owned sector.
“Achieving this objective will enable comprehensive oversight of all economic entities by enhancing the capacity to identify, assess, monitor, and report on fiscal risks, as well as other forms of oversight conducted by relevant ministries. Implementing clear reporting lines with defined deadlines will ensure regular monitoring of the state-owned sector and timely responses to potential risks arising from their operations,” concludes the Analysis.
