Expert-Grup

Analysis of the Functional Alignment of the Organisational Structure of the Public Property Agency

Politici de creștere economicăWednesday, 4 October 20233231 views

Automatically translated summary. The full text is available in Romanian.

A new analysis examines how well the organisational structure of Moldova's Public Property Agency (APP) fits its functional requirements. Despite reorganisations in 2019 and 2020 that followed the 2017 decision to centralise the state's ownership function, the agency still faces capacity constraints and a mandate that the 2022 State Property Strategy expects to be backed by reform.

The analysis, based on axiomatic design theory, compares functional requirements with the agency's organisational design in three areas: recording and consolidating public assets, corporate governance and asset management, plus support functions. It finds chronic capacity problems, no Strategic Development Plan, requirements met only formally, and a structure resembling a ministry rather than a corporate body. Missing are a Supervisory Board with independent members, and the director general is a politically appointed post. Manual registers, overlapping directorates, micromanagement of state companies and asset management organised by asset type rather than method further weaken performance.

Other constraints include no systematic audit of critical processes, excessive regulation and bureaucracy, staffing at only 67%, salaries below ministries and the private sector, uneven workloads and a lack of training in key skills such as QGIS, data analysis and PPP certification.

Functional Alignment of the Public Property Agency