The Government is working on creation of new, efficient instruments for management of state property by using the best practices of developed countries. This was announced by Minister of the Cabinet of Ministers of Ukraine Olexandr Saienko.
"In the field of corporate governance it is essential to change qualitatively the management system of state enterprises. We have set up a Nomination Committee responsible for recruiting professional management and members of independent supervisory boards, and we have five successful cases of the formation of professional and independent supervisory boards in 2018," the Minister said, speaking at the 15th Dragon Capital Investor Conference on February, 12
According to the Minister, it is important to have a clear vision how to transform management of state-owned enterprises (SOEs) because today its number reaches more than 3.5 thousand.
"At present, these SOEs are directly managed by the ministries. Given the total number of enterprises, we have a heavy burden on the ministries. Only the Ministry of Economic Development and Trade manages more than 500 SOEs. Our task is to take burden down from the ministries and to provide the ministries with opportunity to focus on policy development ", Olexandr Saienko stressed.
He noted that the function of controlling state assets should be delegated to the newly created supervisory boards, and ministries should, through policy of ownership, set certain tasks for the enterprise and KPI for its management board.
"Ukraine has a large sector of SOEs, and this number needs to be reduced. We need to start effective privatization process. Thanks to the Parliament, we have a very effective privatization law, which encompasses important tools to protect investors' rights. Most investors are interested in applying English law, which strictly protects the rights of the parties, and the new law gave this opportunity ", the Minister Olexandr Saienko summed up.