Moldovan Parliament approved in the first reading a law providing for the introduction of a mandatory external audit of state and municipal enterprises

Moldovan Parliament approved in the first reading a law providing for the introduction of a mandatory external audit of state and municipal enterprises

In addition, the adopted amendments will eliminate some gaps in legislation that relate to transparency, access to information, procurement, and the prevention of conflicts of interest in state and municipal enterprises. In particular, the approved amendments to the Law on State and Municipal Enterprises stipulate that the annual financial statements of these enterprises must undergo an external audit, and the auditor's report to be published on the company's website and submitted to the State Property Agency. In addition, the state / municipal enterprise will be obliged to post on its website and on the founder’s website the charter, internal regulations, the annual report of the company, including the audit report. The company's annual report should be posted within 2 months from the end of each reporting year and should contain, among other things, information on the number of employees, jobs created and the average monthly salary in the enterprise. Separately, the salary of management should be indicated: directors, deputies, members of the Administrative Board. Another amendment concerns public procurement procedures. It is proposed 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 will be able to be conducted under contracts up to 10 thousand lei. According to the law, transactions with a conflict of interest are considered to be related 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 Moldova in order to obtain the EU macro-financial assistance totaling 100 million euros. // 05.07.2019 - InfoMarket.

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