bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 30.05.2017 | Name days: Lolita, Vitolds
LithuaniaLithuania

Lithuanian President set to root out «eternal» state company CEOs

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

 

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULinas Jegelevičius for the BNN

«Eternal» heads of state and municipal companies, who’ve been at the helm for years and years, must go, insists Lithuanian President Dalia Grybauskaitė.

And, importantly, the Peasants and Greens-led ruling coalition is nodding to her proposition, arguing it is timely and will help fight corruption.

The president has come forward with legal amendments setting a limit of two five-year terms for chief executive officers of state and municipal enterprises and state-owned public and private limited-liability companies.

«In a further effort to increase the transparency of the public sector, President Dalia Grybauskaitė proposes to stop the tradition of «eternal»CEOs. The president proposes to establish limited terms of office for CEOs as an additional safeguard against corruption, nepotism and abuse of office,» Lina Antanavičienė, the President’s advisor on economic issues, said in a statement on Wednesday, January 11.

The amendments come in the wake of media reports that the state railway operator Lietuvos Geležinkeliai (LG) (Lithuanian Railways) had allotted aid to institutions linked to politicians and had been engaged in non-transparent procurement practices.

The Lithuanian railways‘ former CEOStasys Dailydka has been heading Lietuvos Geležinkeliai for a decade after serving as the chief of the company‘s Passenger Transport Board in 2002-2006. He also held a leading position in Lindra company and headed Lietuvos Avialinijos airline for five years.

«Actions of certain groups targeted directly against me affect one of Europe‘s strongest transport companies, thus damaging its image and reputation. In the current situation, I do not see a possibility to continue the work that has been started,» LG cited leaving Dailydka as saying in a press release.

The resignation followed Dailydka‘s conversation with Rokas Masiulis, the new Government‘s Minister of Transportation, who previously headed the Ministry of Energy and has earned the name of a leader with an impeccable reputation and a far-reaching vision.

Lietuvos Geležinkeliai has long been dubbed by Lithuanian media as «a bird table» for the country‘s Social Democrats. It is no secret that many SD members out of the active politics would find green pastures at the company.

LG has contributed to the party‘s electoral campaigns in the past, too.

Yet with the new state authority in Vilnius, the LG distribution of support and internal deals were subjected to a new scrutiny. Not without a yield: it turned out that Lietuvos Geležinkeliai purchased locomotive parts from Russia without any tenders.

If the head-of-the-state‘s proposal is enacted, heads of state companies, including LG, would be made more accountable to the boards and, importantly, the end would be put to ill practice of «eternal» leadership.

Explaining Grybauskaitė’s legislative initiative, the advisor argued that the President «continues» efforts aiming to make the public sector more transparent.

In her words, some of the state companies have become employment agencies for «entire kins» of (retired) high-ranking politicians and have turned into «wallets» for the political parties.

«The most vivid example of ineffective management of a state company has become Lietuvos Geležinkeliai. The practices have caused a big loss to the state and harmed the state’s reputation,» said Antanavičienė.

If the Lithuanian Parliament validates the presidential amendments on fixed five year-terms, they will go into effect from July 1, 2017.

According to data from the President’s office, the state in 2015 owned 123 companies and local authorities controlled 233 companies. The CEOs of 20 state-owned companies have been in their posts for over 20 years, some of them for as many as 30 years. Around 40 have held the jobs for more than 10 years. Forestry enterprises and road maintenance companies have the largest numbers of long-term CEOs. «Eternal» heads are especially spread among forestry enterprises, according to the President’s Office.

The heads of forestry offices in the municipalities of Anykščiai, Prienai, Šiauliai ir Telšiai have worked as their executives over 30 years and their counterparts in the Marijampolė and Radviliškis municipalities have held the office for 26 years.

Upon the law, all CEOs with the experience in the office extending over 10 years will have to leave the company within year since the law enactment.

The President also finds intolerable that a staggering number of state companies, 45, to be exact, do not pay any dividends and proceeds from their profit.

«Only eight of them have reached the set profit return mark,» the advisor noted.

Asked by BNN, Vitalijus Gailius, a Lithuanian parliamentarian and the chief of the Lithuanian legislature’s Anti-Corruption Commission, welcomed the idea of setting fixed terms for state companies’ CEOs.

«I’ve long been calling all to do that,» he suggested, adding that, though, it’s up to a discussion what limitations ought to be introduced.

«Whether it has to be the barrier of two consecutive terms or another form, I am not sure. What I know for sure that, in many cases, with some of the CEOs’ bad-management practises made public, they continue (working) as if nothing had happened. This should be a concern for all,» Gailius underscored.

Before, the Lithuanian President proposed limiting school headteachers’ terms. She has submitted amendments to the Law on Education, which, if enacted, would allow headteachers to direct the school not longer than two four-year terms.

In addition, the President s wants headteachers’s evaluation on an annual basis. If the principle does not pass the test for two consecutive years, he or she will be sacked under the law.

Jurgita Petrauskienė, Lithuania’s new Education minister has endorsed the presidential initiatives, claiming they would do «good» for Lithuanian schools.

Many of the principles across Lithuania are cronies of local mayors, who, with the expanded authorities, can appoint school headteachers directly, without the approval from the municipal Councils.

«If the head-of-state thinks that such changes are necessary, I’m not in a position to question her. My bottom point is simple: there are no irreplaceable people and the same goes for the school headteachers. Let’s admit that a new broom often is more effective than the old one,» Laimute Benetienė, the headteacher of Vladas Jurgutis secondary school in the resort town of Palanga, told BNN.


Leave a reply

Free skin test uncovers skin cancer for several Latvian residents

«The situation with skin cancer in Latvia requires attention, because three melanomas have been found among 3,000 people within eight hours. This shows a serious situation in the country,» BNN was told by chairman of Dermatologists Against Skin Cancer association Raimonds Karls.

Russian capital hit by tragic thunderstorm

Russian capital Moscow has been hit by a powerful thunderstorm that has taken the lives of at least 11 people. The storm on Monday, May 29, toppled hundreds of trees and that electrical cables were damaged as Moscow was lashed with high winds, hail and torrential rain.

Aseradens: businessmen are important partners for the country’s development

This week, Latvian Economy Minister Arvils Aseradens will invite businesses to contribute to development of innovations, adding that the country’s healthy development requires businessmen as invaluable partners, because development of products, services or innovations also contributes to the development of separate industries, as BNN was informed by Economy Ministry.

Murniece emphasizes Lithuania’s role in the fight against Russia’s information war

Latvia and Lithuania have to continue active cooperation in security and defence, as well as transport and energy, says Latvian Saeima speaker Inara Murniece during her meeting with Lithuanian Seimas Chairman Viktoras Pranckietis.

Need for additional income equally high in all three Baltic States

More than 36% of Latvian residents gained additional income in the past year, according to data of a study performed by Swedbank’s Institute of Finances.

Accommodation and catering service industry has become a risk sector in Latvia

Non-registered employment and accidents-wise, catering and accommodation service industry is one of Latvia’s risk sectors, as concluded by State Labour Inspectorate.

Construction costs in Latvia up 0.9% in April

Compared to March, the level of construction costs in Latvia increased by 0.9 % in April 2017. Labour remuneration of workers grew by 2.9 %, prices of building materials increased by 0.5 %, whereas maintenance and operational costs of machinery and equipment rose by 0.4 %.

Estonian wage growth slows down

The average monthly gross wage in Estonia, in the first three months of 2017, compared to the respective period last year, increased by 5.7%, Estonian statisticians have estimated and concluded that the country’s wage increase has continued to decelerate for year in a row.

Allied troops continue arriving in Latvia for military exercises

Saber Strike international military exercises in Europe will be taking place throughout 3 – 15 June. Allied troops and military vehicles continue arriving in Latvia. Because of that, there may be temporary traffic congestions on roads, as reported by Defence Ministry.

De Facto: millionaire Krumins’ family donates to UGF; four more houses to be built in Jurmala

Latvian businessman Julijs Krumins’ daughter donated EUR 19,000 to the Union of Greens and Farmers in May, as reported by LTV programme De Facto. Krumins has confirmed this, adding that «four more houses are to be built in Jurmala».

State law enforcement institutions join forces to combat crime

Latvia’s state law enforcement institutions join forces to combat crime. Work groups first meeting already held, as reported by State Police representatives.

Political fights for tax reforms planned to be concluded in Mid-June

Latvian government plans to view legislative drafts associated with the intended tax reform in the middle of June. Finance Minister Dana Reizniece-Ozola says the ministry is working hard to prepare legislative drafts. The objective is viewing legislative drafts in the government on 13 June, said the minister.

More rain expected in Latvia this week; air temperature to decline also

With the beginning of next week, weather in Latvia will be dictated by the south-east part of a cyclone. Central regions will likely experience short-term rain and even thunderstorms, as reported by the Environment, Geology and Meteorology Centre.

Germany: EU cannot fully depend on allies

The European Union cannot fully depend on the U.S. and UK anymore, the long-time German Chancellor, Angela Merkel, has evaluated in election atmosphere.

Week in Lithuania. PM: Coalition isn't the best

Lithuanian Prime Minister Saulius Skvernelis, whose government has been in office for half a year, says that the Lithuanian Farmers and Greens Union and the Lithuanian Social Democratic Party differ in their philosophies and approaches to many issues.

BNN summary of the week: Estonian minister disapproves of NATO; Latvia’s tax system lags behind

BNN offers a summary of this week’s topical news in a variety of categories: Business; Change; Future; Decline; Truth and Growth.

Municipal elections 2017: what do people say?

With municipal elections gradually coming close, BNN offers a compilation of opinions provided by experts from different industries. Short answers consist of thoughts about specific municipalities that affect respondents directly, and municipal administrations in general – what people expect from officials and what changes they expect from elections.

Trade of natural gas to legal clients in Latvia commences

Trade of natural gas to legal clients in Latvia has commenced. Latvenergo’s Elektrum product offers fixed-price contracts for 12-month supply period. The first gas supply contracts have been signed with clients in Latvia, the company reports.

Murniece: the biggest strength of Latvia’s parliament is public involvement

The biggest strength of Latvia’s parliament is the involvement of the public in resolution efforts of matters associated with child and women’s rights, the rights of disabled people, as well as security, tax policy and the European Union, says Saeima speaker Inara Murniece.

Corruption on decline in Lithuania, yet still remains troublesome

To wrap up the findings of a new corruption research ordered by the Special Investigation Service, an institution dealing with financial crimes in Lithuania, the situation is largely improving, yet not as fast as the service wishes.

Ventspils signs agreement with Chinese-Belarusian industrial park Great Stone

Vetnspils Freeport Authority and Ventspils High Technology Park signed an agreement yesterday with Chinese-Belarusian industrial park Great Stone, which is the largest infrastructure development project in Belarus, as reported by the freeport’s representatives.

Resignation filed by arrested Tallinn Deputy Mayor

The Deputy Mayor of the Estonian capital has stepped down from office after being arrested as part of a criminal case into violations of procedural restrictions of Tallinn procurement tenders.

Residents: situation in Latvia is developing in a wrong manner

54% of residents believe the situation in Latvia is currently developing in a wrong manner. A similar situation is noted in relation to the evaluation of the government’s work. 75% of respondents are critical about the government’s work. Only 17% of respondents are positive about the government’s work, according to results of Baltic International Bank Latvian Barometer.

Finance Minister: we have to be ready for flexibility in the reform plan

Currently we have to progress forward with the intended tax reform and prepare for a degree of flexibility, says Latvian Finance Minister Dana Reizniece-Ozola.

Zarins: unlike healthcare workers, Latvia’s roads are crumbling silently

Saeima deputy Ivars Zarins has submitted a proposal that offers restoring State Roads Fund and providing it with funding of 80% of excise tax for oil products. It is also proposed to divert income from vehicle operation tax and road use fee.

Newest comments