In Moldova will be introduced a mandatory external audit of state and municipal enterprises.

In Moldova will be introduced a mandatory external audit of state and municipal enterprises.

The relevant legislative initiative on amendments and additions to the Law on State and Municipal Enterprises was considered by the parliamentary commission on economy, budget and finance. The document provides for a number of amendments that will eliminate some of the gaps in legislation that relate to transparency, access to information, procurement and the prevention of conflicts of interest in state and municipal enterprises. According to the draft law, the state / municipal enterprise will be obliged to post on its website and on the founder’s website the charter, internal regulations, annual report, including annual reports of external auditors. The annual report should be posted within 2 months from the end of each reporting year. This report should contain information on the number of employees, jobs created and the average monthly salary for the enterprise. Separately, the salary of the management (director, deputies, members of the administrative council) must be indicated. The draft law provides that the annual financial statements of state and municipal enterprises must undergo a mandatory external audit, the auditor’s report is published on the website of the enterprise and submitted to the State Property Agency. Another amendment concerns public procurement procedures. The initiative authors propose that state / municipal enterprises purchase goods, works and services for production needs and provide material and technical base through public procurement systems, if the value of the transaction / contract exceeds 10 thousand lei. Procurement based on internal procedures of state-owned enterprises could be carried out under contracts worth less than 10 thousand lei. According to the law, transactions with a conflict of interest are considered to be related to transactions whose value exceeds 1% of the value of the company's net assets according to the latest financial statements or exceeds 400 thousand lei. The new edition proposes to reduce this threshold to 10 thousand lei. The bill also provides for increased access to information on the activities of the enterprise by representatives of civil society and the media. Until now, referring to trade secrets, the administration of state-owned enterprises did not provide the requested information. The authors of the draft law point out that ensuring the transparency of state and municipal enterprises is one of the issues included in the reform agenda that is necessary for obtaining Moldova's EU macro-financial assistance in the amount of 100 million euros.// 04.07.2019 — InfoMarket.

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