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Public companies risky for the Serbian economy

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The sector of public companies in Serbia is still large and represents a risk, both for the fiscal position of the state and for the overall business of the economy, said today the representative of the World Bank in Serbia, Dusko Vasiljevic.
He is at the Forum “Why are public companies in Serbia at a loss?” said that the losses of that sector are a great expense for the state.
“These losses were leveled through direct subsidies to these companies, as well as through non-payment of taxes and contributions and obligations to other public companies,” Vasiljevic said.
He added that the profile of public companies, which now perform mainly activities of public interest, at the national and local level, has changed.
Vasiljevic pointed out that the focus should be on improving the operations of public companies, increasing their transparency and accountability.
“A good framework for corporate governance of public companies is key,” Vasiljevic said.
He also stated that Serbia is only on the 15th place out of 20 countries in Central and Eastern Europe in terms of the quality of the corporate governance framework in public companies.
“The two main areas that need to be put in order are the general management and legislative framework and its implementation,” Vasiljevic said.
According to him, the problem is also the way of appointing administrative bodies in public companies.
Milorad Filipovic, a professor at the Faculty of Economics in Belgrade, stated that the overall public sector and its resources are still seen as “the prey of the winner”, and not as accumulated public property in the function of improving the lives of citizens.
“The management of public companies is a matter of pursuing the interests and goals of certain winning elites,” said Filipovic, Nova reports.

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