The State Property Fund will introduce progressive digital tools for centralized management of a large number of state-owned enterprises
The Fund’s vision for eliminating the shortcomings in the work that were identified during the audit of the institution's activities in the previous periods– 2020-2021 was presented to the relevant Committee of the Verkhovna Rada and the Accounting Chamber. The proposals include mechanisms for regulating the appointment procedures for directors and members of the Supervisory Boards in state-owned enterprises, management optimization of the Fund's structural divisions, and the implementation of modern digital tools for centralized management of a large number of state-owned enterprises.
“The report of the Accounting Chamber has revealed to us the complex problems that have accumulated over 30 years of the Fund's existence. However, we have solutions that will allow us to eliminate them in the short term and, in the long term, fundamentally change the paradigm of the Fund. We want to focus our work on corporate governance, and for this, we need effective tools. One of them is the Government Resources Planning and Management (GRPM) system, based on modern digital solutions, which we plan to implement in the Fund in the near future. It will help usto improve the monitoring and control functions over a large number of state-owned enterprises by consolidating them based on industry or holding principles, and it will be integrated with different government registries,” said Rustem Umerov, Chairman of the SPFU.
Similar approaches have been successfully used around the world for managing state-owned enterprises and are based on OECD principles. They allow increasing the efficiency of revenue management of state-owned enterprises and making this process clear for stakeholders.
“Revenue management is a critically important aspect of running any business. Without proper financial control, our state-owned enterprises will continue to generate losses. Our task is to improve resource allocation and make the financial reporting of state-owned enterprises automated and clear,” emphasized Rustem Umerov.
In addition, proper income management practices of state-owned enterprises will also help prevent financial abuses and reduce the level of corruption risks.