State-Owned Enterprise Sector: Corruption Risks and Necessary Reforms
Automatically translated summary. The full text is available in Romanian.
A policy document supported by the National Endowment for Democracy examines state-owned enterprises in the Republic of Moldova. It links their modest efficiency to corruption, analyses legislative and institutional gaps, and proposes treating corruption risk factors as integrity obstacles that must be eliminated to improve governance in the sector.
At state level, the main integrity obstacles are unclear roles among the bodies managing enterprises, with the Government directly involved in administration, and the lack of a defined ownership policy. The Public Property Agency has limited capacity despite a very broad mandate. Corporate governance is weak, board nominations lack transparency and independent members, and little information is published online.
At enterprise level, obstacles include fragile internal control, problematic procurement, inefficient asset management, defective accounting, non-transparent hiring, unjustified bonuses and low public accountability. The document recommends approving an ownership policy, strengthening governance and transparency, empowering the Agency, making internal audit report to the board, professionalising boards and reinforcing external control. Shifting from reactive to proactive identification of obstacles would make civil society and the media more effective.
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