IMF calls for abolition of ‘acting director’ position in Serbia

The International Monetary Fund has recommended to the Serbian authorities to stop the practice of appointing acting directors in public enterprises, which hinders a complete reform of these companies that includes professional management.

It is therefore requested that, by the end of the year, the government finalizes the procedure of appointment of professional management of public enterprises thus putting the stop to the practice of appointing acting directors for an indefinite period of time.

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The IMF representatives have recommended strict compliance with the Public Enterprise Law, according to which acting directors in public companies may remain in office for up to one year.

“Improving governance in public companies is extremely important for the IMF and it is impossible to achieve by having acting directors in place because they are susceptible to political pressure. The current situation is unacceptable and the IMF has recommended the government to complete this process as soon as possible”, writes the Blic daily.

In October 2019, it was recorded that up to 20 directors of 37 companies were acting directors. Such a situation also represents a significant obstacle to public sector reforms, which are a prerequisite for continued fiscal consolidation.

The IMF has also noted that the provisions of the Law on Public Enterprises concerning the appointment of top management are well defined and should be implemented consistently because professional rather than political criteria should be the prerequisite for appointment.

(Seebiz, 15.01.2020)



This post is also available in: Italiano

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