The amendments to the Law on Public Enterprises come at a time when public enterprises have for years been subject to criticism for political influence, inefficiency and insufficient financial discipline.
Dismissal of the director immediately, if there is non-compliance with the laws, negligent operation and causing material damage, are only part of the amendments and additions to the Law on Public Enterprises which is in parliamentary procedure. With the changes, the state announces a significant tightening of the conditions for the selection and dismissal of directors, as well as the introduction of stronger mechanisms for transparency, accountability and professional management. The reform comes at a time when public enterprises have for years been subject to criticism for political influence, inefficiency and insufficient financial discipline.
According to the new legal solutions, the public enterprises established by the Government will be managed by a director who has a deputy. Both will be elected and dismissed by the Management Board, with a mandate of four years. In the case of public enterprises established by the municipalities and the City of Skopje, the director appoints and dismisses the mayor, but with retention of the obligation for public competition and clearly established criteria.
One of the most important changes is the obligation to publish a public announcement for the election of a director and deputy director in at least three daily newspapers at the national level. In addition, one of the advertisements must be published in a medium in a language spoken by at least 20% of the citizens in the country.
With this, the legislator tries to ensure wider availability of information and prevent closed selection processes, which were often criticized by the public.
In addition, the transparency of the selection process itself is increasing, where the conditions, criteria and results of the selection are expected to be published, in order for the public to have an insight into the way decisions are made. The new provisions also introduce clearly defined conditions that candidates for directors and their deputies must fulfill. Among them, in addition to citizenship and a completed higher education with at least 240 ECTS and a minimum of five years of work experience.
Dismissal if the law is not respected
The law significantly expands the list of grounds for early dismissal of directors. In addition to disobeying the laws, the statute or the decisions of the management board, the director can be dismissed for negligent operation and causing material damage, failure to submit financial reports and annual accounts and failure to publish mandatory reports on the company’s website.
In case of dismissal, the management board or the mayor is obliged to appoint an acting director within five days, who can hold the office for a maximum of six months. Although there was previously a legal framework for public tenders and a four-year mandate, in practice the system was often criticized as insufficiently transparent and susceptible to political influences. In the previous election model, the management boards or the mayors formally made the decisions and acting officials were often appointed without full competitions.
With the new changes, the authorities announce that the goal is to depoliticize public enterprises, increase professional standards and improve financial management. It is expected that director positions will be more accessible to professional staff, and less dependent on political agreements. However, despite the legal amendments, part of the expert public warns that the key challenge will not be the adoption of the law, but its consistent application in practice. According to them, even the strictest criteria can lose their weight if the selection processes remain under political influence or if there is a lack of real supervision over the work of the management boards.
An additional dilemma is opened up by the practice with acting officials. Although the mandate of the acting president is limited by law. directors, in past years they often stayed in office longer than expected, which opened up space for institutional instability.
In parallel, public enterprises also face financial challenges, from accumulated debts to inefficient management of resources. In such a context, new directors are expected to be not only administrative heads, but also managers with clear responsibility for results.
