Kyrgyz Economy Ministry proposes measures to reform state property management system

Bishkek, July 9, 2019. /Kabar/. To date, the current system of state property management is characterized by low efficiency and internal contradictions between the functions of the state as an owner, interested in maximizing income from the use of state assets, and the functions of industry-specific regulation of state-owned companies, the press service of the Ministry of Economy of the Kyrgyz Republic reported.
Inconsistency of actions of management subjects, lack of strategic planning and effective control over the management of state-owned companies, as well as other accumulated problems, including deficiencies in personnel policy, have caused irrational use of state assets in key sectors of the economy.
In this regard, it is proposed to take measures to reform the state property management system by means of the following:
- Creation of national management companies, which should assist in the development of various spheres of the national economy;
- Creating conditions for the introduction of a modern system of corporate governance of state-owned companies and a dynamic increase in their capital;
- Creation of the basis for development of the internal control system in state companies in accordance with the best international practice in this field;
- Establishment of clear mechanisms to enable sectoral public authorities to pursue the necessary sectoral policies in state companies.
In this regard, the Kyrgyz Government initiated a draft law "On national management companies in the Kyrgyz Republic", aimed at implementing the above measures.
Practical implementation of this initiative will make it possible to reduce the scope of tasks and works in the area of management of economic entities with state participation, and to reorganize the authorized public authority in management of state property into a department or service under the relevant ministry, which provides functions on implementation of the state policy in the field of lease, introduction of a unified register of state property, their accounting and inventory, as well as privatization.