AL approves new law on public-owned companies

In its final reading Tuesday evening, the Legislative Assembly (AL) approved the new law to regulate public-owned companies.

All lawmakers voted in favor of the bill, although some commented on the supervision of the assets and financial support to these companies, calling for a more transparent disclosure of the results as well as the use of the public funds invested in such entities.

The government side responded to such comments that the bill had been drafted precisely with the purpose of better safeguarding the public purse. It added that the companies in question must fully disclose their use of public funds to the public, subjecting themselves not only to government supervision but to that of the general public as well.

In the future, the government will classify the nature of different public-funded enterprises and implement assessment and supervision accordingly.

Also addressed was the penalties regime for those who fail to comply with the provision or in cases where bad management (of the company) causes damage to the public purse.

Although there were no specific references to what can happen if one of the companies causes such damage, the government said that the “relevant departments will analyze the reasons behind the problem and take appropriate measures to promote a rectification,” noting that in cases where administrators are found responsible for acts of mismanagement they can be suspended and subjected to criminal or civil liability.