Effects of the new Law on Public Enterprises – politicization or professionalization

This project will deal with issue of implementation and improvement of the Law on Public Enterprises (hereinafter: “PE”), the law which was supposed to lead to professionalization of public enterprises and thus prevent misuse of public funds and corruption. Law entered into force on December 25th 2012 and introduced elements of professionalization of PE management, but left the mechanisms through which it is possible to preserve the status quo - a strong party influence on the management of PEs and thus create room for corruption risk.

In this project, TS will conduct a thorough and proper monitoring of law enforcement in following areas:

• election of directors upon public competitions
• preparation of annual plans of public enterprises
• reporting on implementation of annual plans,
• rewarding or sanctioning of management, depending on the results of the implementation of plans,
• comparison of PEs’ expenditures for sponsorships and marketing before and during the implementation of the new law,
• comparison of the performance of PEs in the period before and after the election of new supervisory boards and directors

Project is implemented with the financial assistance of the Netherlands Minister of Foreign Affairs.

• Effects of the new Law on Public Enterprises politicization or professionalization October 2014.pdf