Sošić: Even a five-member commission with independent candidates cannot prevent political influence on companies

The Parliament of Montenegro adopted the Law on the Management of State-Owned Enterprises, which the Government calls the largest reform in this area in recent decades.

While the government is announcing that clear criteria and professionalization of management structures are being introduced, some experts warn that political influence will not be completely removed.

The Law on the Management of State-Owned Companies, adopted by the Parliament, is the largest reform of state property management in recent decades, the Ministry of Finance announced, adding that it stipulates clear rules on the responsibility of all participants in the system. One of the most important innovations relates to the professionalization of management structures in state-owned enterprises.

"Clear and strict criteria for the selection of candidates are being introduced, as is an independent selection committee, as well as an obligation for members of the management body to possess appropriate knowledge, experience and competences. Members of the management body will be selected following a public competition," the Ministry of Finance said.

The Institute Alternative (IA), however, says that the Law, as currently drafted, will not lead to the professionalization and depoliticization of state-owned companies.

"The law still gives enormous discretionary powers so that, if political parties still want their leaders to be on the management bodies of state-owned companies, they can be," said Marko Sošić from IA.

Sošić says that political influence on companies cannot be prevented even by a five-member commission, with independent candidates, which is responsible for selecting directors and members of the company's management.

"I think that this is not a promising start and that at the beginning we somehow relied on politics, namely two ministers and a representative of the Prime Minister's Cabinet, essentially making the decision on this. Nothing has been done to make these companies less attractive to representatives of political parties. I think that with this Law, the freedom in the discretionary management of company funds, donations, aid, everything that companies enjoy now will continue," said Sošić.

The law stipulates that the director and members of the boards of state-owned enterprises are elected by a commission, chaired by the Minister of Finance, and that the members are the minister responsible for the area in which the company operates, a representative of the Prime Minister's Office, and of the remaining two members, one is proposed by the University of Montenegro, while the other will be an independent expert in the area in which the company operates, or in the field of corporate governance.