President Sadyr Japarov signed the Decree on issues of state property management. This was reported on March 28 in the Presidential Administration.
According to this decree, the State Property Management Fund under the Ministry of Economy and Commerce of Kyrgyzstan will be transformed into the State Agency for State Property Management under the Cabinet of Ministers of Kyrgyzstan.
This measure is aimed at optimizing the activities of the authorized state body in the field of state property management and strengthening its functions.
At present, the State Property Fund, on behalf of the state, acts as a shareholder in 42 business companies in various sectors of the economy. There are also 88 state-owned enterprises in the following areas of activity: in the field of transport and communications 11 SE, in the field of communications, television and innovative services 12 SE, in the field of agriculture 24 SE, in the system of state geology 2 SE, the provision of various services 39 GP.
The administration recalled that the fund is authorized to coordinate the staffing of each state-owned enterprise, approve their reports on the results of financial and economic activities and draft budgets for the corresponding year, and also approve the amount of net profit to be transferred to the budget.
At the same time, it is noted that today there is a need to revise the management system of companies with state participation, taking into account current and long-term priorities of state policy, and to analyse the economic feasibility of the functioning of each individual Company. The main tasks in the framework of improving their activities are:
increasing transparency, openness of the system of selection and promotion of personnel to management bodies;
strengthening the system of motivation and responsibility of members of the Company's management bodies;
putting into practice the institute of independent directors.
According to the administration, it is also required to solve all existing problems in the field of leasing state property.
For example, the fund will have to carry out work to identify additional empty areas in public buildings and premises.
“Given the existing corruption risks and the lack of interest of state institutions in providing empty space for rent due to the fact that 100% of rental income is transferred to the republican budget, the work ahead requires considerable effort and resources,” the report says.
The administration recalled that to date, the Parliament of Kyrgyzstan has approved the Privatisation Program for 2023-2025. In addition to the sale of state property, this Program provides for the transformation of state enterprises into joint-stock companies with the preservation of 100% of shares in state ownership.
Along with the above, as an alternative to privatisation, the mechanisms of public-private partnership, investment lease, and trust management of property are also practiced.
Reported by Tazabek (Kyrgyzstan).
