The newly implemented law governing the management of state-owned companies in Serbia has raised significant concerns about potential corruption risks, according to Transparency Serbia (TS). Effective from today, this legislation introduces several changes but fails to impose stringent anti-corruption measures on newly appointed company managers, including members of shareholders’ assemblies, supervisory boards, directors, and acting directors.
Under the new law, these managers are not required to submit asset and income reports, nor are they subject to other regulations outlined in the Law on Prevention of Corruption. TS has highlighted that this gap will persist until there is a revision in the definition of a public official within the anti-corruption framework, specifically addressing the consequences of a controversial interpretation adopted by the Serbian Parliament in February 2022.
This interpretation has further narrowed the definition of a public official, linking it primarily to the authority responsible for their appointment. As a result, while the Government—which appoints supervisory board members and directors of public companies—is included under this definition, other key figures such as the Ministers of Economy and Energy, who appoint assembly members, and the assemblies themselves, which elect supervisory boards and directors, are excluded.
TS warns of significant risks associated with the lack of clarity in the appointment process for acting directors. The current legislation does not explicitly address the maximum duration for acting positions, which, under the Law on Public Enterprises, is limited to one year. This omission could lead to interpretations that exacerbate the existing problems.
On the positive side, the new law introduces several reforms. It establishes new regulations for state-owned enterprises operating in the market that were previously not covered by the Law on Public Enterprises, such as Telekom. Additionally, it mandates training in corporate governance, which is expected to bring improvements in management practices.
Overall, while the new legislation aims to introduce necessary changes, Transparency Serbia urges for reforms to ensure that anti-corruption measures are adequately enforced and that the appointment processes for key positions are transparent and accountable.
