/ world today news/ State and municipal enterprises must be developed, not privatized
“State and municipal enterprises are an important strategic sector in the Bulgarian economy. They can generate profit and growth in the economy instead of being used to drain a public resource and later privatize it.” This was stated by the People’s Representative from the PG of the BSP LEFT BULGARIA and a member of the IB of the BSP Dragomir Stoynev, where he presented the project of the left for the Law on Public Enterprises. He explained that the introduced bill completely changes the concept and vision of the management of state-owned enterprises. “This is the first step of the alternative that the left wants to show for the way of managing the Bulgarian economy and the state’s participation in it,” emphasized the socialist. According to him, first of all, it is important to put order in the management of the public resource. He explained that the bill concerns the management of commercial companies with more than 50% state and municipal participation. According to him, the economy is not made only by redistributing European funds. “The state and municipalities must learn to manage their resources effectively”, he declared and gave an example with the Sopot MZ, how a loss-making enterprise can generate profit and employment when it is managed well.
An end to party influence and “ladybugs” on the boards of state-owned enterprises
Stoynev explained that the bill has several main goals. As the first such, he indicated the stopping of the destruction and draining of the public resource and its sale. In the second place, the socialist indicated the state enterprises, which should start being managed on a market principle. He emphasized that the municipal enterprises should not be forgotten, because they can be a stabilizing factor and bring profit with the expected higher deficits in the local budgets. Stoynev stated that, thirdly, the dependence of the state sector in the economy on political changes should be cut. “To stop party influence and the appointment of “ladybugs” on the boards of state-owned enterprises. To have clear criteria and mechanisms for appointing senior managers with professional qualities”, he explained. According to him, the new board of Stara Zagora airport from 5 people to 3 workers would not have existed if this law had existed. “State-owned enterprises should be managed according to the best model of private companies plus a much higher level of transparency and public control,” he was categorical.
Stoynev explained that working on a market principle means that state and municipal enterprises work entirely on a market principle, with a professional board, that there are competitions, full accountability and transparency of what is done in these enterprises and that party entry disappears. “It should be known that the board can be changed only according to the results of the enterprise, and not according to the relevant government, which wishes to appoint party-loyal incompetents,” said the former Minister of Economy and Energy.
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