Political Control Undermines Efficiency of State-Owned Companies

Participants of a regional conference “How to strengthen good governance in public companies?” organized by Transparency International BiH, were told that the crucial problem of government-controlled companies in Bosnia is political control.

Chairman of the TI BiH main board, Srđan Blagovčanin, said that the government-owned enterprises are in the hands of the ruling political parties, which use the companies’ resources to keep the grip on power.

“This is achieved by irregular employment and by siphoning profits, which is why the citizens do not receive the kind of services they should receive from the public enterprises,” Blagovčanin said.

TI BiH conduced a survey on good governance in state-owned enterprises, on a sample of 100 companies, and the project was supported by the British Government.

Blagovčanin added that it was necessary to provide support to government-controlled enterprises in strengthening the mechanisms of accountability and transparency, as well as the overall functioning through the improvement of the employment process, in order to provide quality services to citizens. British Ambassador to Bosnia, Edward Ferguson, said that there were many good hard-working people in all of the analyzed state-owned companies, but it is obvious that those companies are not efficient enough.

“Great Britain wants to help those who are trying to fix the situation and this analysis will be the basis for further work,” Ferguson said.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s