Thursday, December 25, 2014

Medvedev has proposed to return the officials on the boards of state-owned companies – RBC

Medvedev has proposed to return the officials on the boards of state-owned companies – RBC

«It is advisable to return to the question of the representation of civil servants on the boards of state-owned companies,” – said the Prime Minister, opening a government meeting on Thursday. According to him, to reinforce control procedures “could be allowed to participate senior officials holding public office, members of the government is on the board of directors, supervisory boards».

The Prime Minister believes that this measure is necessary ” Given the current economic situation, due to the need to introduce strict control over the activities of state-owned companies, for their economic performance, the movements of foreign exchange funds to ensure implementation of investment programs ».

According to him, this may be a temporary measure, aimed at improving corporate management and gain control of the company in the current situation. Dmitry Medvedev announced that he intends to discuss this measure with Vladimir Putin today.

The growing influence of the government on the state-owned company began last week with the directive, according to which “Gazprom”, “Rosneft”, Alrosa, “Zarubezhneft” and producer of diamonds on the “Crystal” have until March 1 to bring the size of net foreign exchange assets to the volume that occurred on October 1, 2014, and thereafter to maintain them at this level.

«Rosneft» submit to the Government’s initiative to introduce officials the board of directors of the company, if this initiative is approved, this RBC said Vice President of Public Relations Mikhail Leontiev.

«We must understand that there is a war against the Russian economy. And the enemy does not invent himself any standards – does not limit itself in any way, maneuvering, depending on the situation. Therefore, why should we deprive ourselves of the same opportunities? From this perspective, the immediate presence of representatives of the state in companies can be justified. This option has the right to exist, – said Leontiev. – We carry out all orders of government – the main shareholder. Government in terms of its powers runs the company as an owner. Appoint someone – he will be ».

The planned re-election of the Board of Directors of” Rosneft “to be held in June 2015, but” if it is available to enter immediately – hence, will be introduced immediately, this is no problem, “said representative of “Rosneft».

Now the board of directors of “Rosneft” no civil servants, except for the company’s president Igor Sechin, who is chairman of the commission on fuel and energy sector, said Leontiev.

The reform in according to which civil servants have to leave the boards of state-owned companies, was initiated by Dmitry Medvedev in 2011, when he was president. He then instructed to remove the profile vice-premiers and ministers from the boards of directors of state companies operating in a competitive environment, as well as to introduce a special regime of consideration of complaints of corruption and give more rights to minority shareholders.

In 2012, following a meeting with the experts’ open government, “he said deadlines of the measure, giving officials the government three years to implement the reforms. Thus, the statement of the Prime Minister about the possibility of “temporary” the return of civil servants on the boards of state-owned companies almost coincided with the time the program ends at the conclusion of their state-owned companies.

The board of directors of a number of state-owned companies are currently present government representatives. Now Railways Board of Directors consists of 11 members. In June, he had introduced the Deputy Transport Minister Oleg Belozerov, Deputy Finance Minister Andrei Ivanov. Deputy Energy Minister Vyacheslav Kravchenko member of the Board of Directors “Inter RAO”. The supervisory board (the analog of the Board of Directors) ALROSA includes Director of Financial Policy and Finance Minister Sergei Barsukov Yakut officials.

Officials constitute the majority of the Supervisory Board of SC “Rostec” – Finance Minister Anton Siluanov, Industry Minister Denis Manturov three presidential aide Igor Levitin, Yuri Ushakov and Larissa Brycheva, representatives of the presidential administration, the Ministry of Defense. Also, officials are present in the boards of directors of “daughters” “Rostec.” The Board of Directors of the United Aircraft Corporation consists of deputy heads of the Ministry of Finance, Industry and Trade, Ministry of Defence, the Ministry of Transport.

The head of the Federal Property Agency Olga Dergunova said in early December at a meeting with journalists that a civil servant from the federal authority will be present on the Board of Directors “Bashneft “which moved to the state this year. “We recommend that the Ministry of Energy (most often it is the Deputy Minister),” – she specified. The Board of Directors of “Rosneft” and “Gazprom” is not government officials.

Presidential Initiative Medvedev remove officials from the boards of directors of state-owned companies was “too radical solution”, which are not ready neither the state nor the managers, the director Prosperity Capital Management Alexander Branis: “We have not yet established body of strong independent directors, they lack credibility».

Return of civil servants on the boards of state-owned companies will enhance the quality of corporate governance, says Branis (serves on the boards of directors of several subsidiaries companies “Rosset”). According to him, the officials help to control the independent directors of the company. In addition, the independent directors will be able to maintain with the State direct dialogue on important issues for companies, says Branis.

«If the state is the majority shareholder, it is normal that the direct representatives of the government are included in the board of directors. In their absence, councils often fall under the influence of management, – says Branis. – The participation of the civil servants will increase the weight of the board of directors in the management of state companies ».

The fact that the government intends to return to the officials on the boards of state-owned companies, in January 2014 reported” Vedomosti “. According to the publication, the author of the idea acted Federal Property Management Agency. First of all, it was about the companies included in the privatization plan. His performance and were designed to control the Director of the State.

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