| Bulgaria: Integrity Scorecard Report > Sub-Category: State-Owned Enterprises | ||
| Indicators | Score | |
| 64 | In law, is there an agency or equivalent mechanism overseeing state-owned companies? | 100 |
| 65 | Is the agency or equivalent mechanism overseeing state-owned companies effective? | 60 |
| 66 | Can citizens access the financial records of state-owned companies? | 95 |
Indicator and sub-Indicator Details
| 64 | In law, is there an agency or equivalent mechanism overseeing state-owned companies? | |||||||
| 64: In law, is there an agency or equivalent mechanism overseeing state-owned companies? | ||||||||
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Comments: In late 2006 there was ideas of establishing a single agency managing state-owned companies. The Minister suggesting this idea (Ovcharov) was sacked from the government and could not carry it trhough. See [ LINK ] References: There are different mechanisms for overseeing the state owned companies. Some of them are supervised by the Ministries directly. Publicly listed companies are supervised also by the Financial Supervision Commission: see www.fsc.bg
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| 65 | Is the agency or equivalent mechanism overseeing state-owned companies effective? | |||||||
| 65a: In law, the agency or equivalent mechanism overseeing state-owned companies is protected from political interference. | ||||||||
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Comments: References: The enterprises, which are directly supervised by the ministries, are in fact controlled ultimately by political appointees (ministers), who appoint also board members. However, for the publicly listed companies, and the companies providing financial services, there is an independnt agency, which exercises controlling functions. See the Law on the Financial Supervision Commission, Art. 5 (www.fsc.bg
Peer Review Comments: There is no such law.
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| 65b: In practice, the agency or equivalent mechanism overseeing state-owned companies has a professional, full-time staff. | ||||||||
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Comments: References: Both the ministries and the FSC have professional staff: Interview with Georgi Ganev (CLS) October 2007
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| 65c: In practice, the agency or equivalent mechanism overseeing state-owned companies receives regular funding. | ||||||||
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Comments: References: No reports of funding problems in this regard.
Peer Review Comments: It receives funding from the state budget.
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| 65d: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies independently initiates investigations. | ||||||||
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Comments: References: Interviews with economists at the Centre for Liberal Strategies (October 2007)
Peer Review Comments: No cases have been brought. Instead, small, administrative sanctions are levied.
Peer Review Comments: Such investigations are rarely initiated.
Peer Review Comments: It is difficult to assess whether the agencies initiated investigations when needed. There are not many media reports or independent studies on this issue.
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| 65e: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies imposes penalties on offenders. | ||||||||
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Comments: References: Interviews with the economists of the Centre for Liberal Strategies, Sofia, October 2007. State owned enterprises are generally politically supervised in Bulgaria - either by the government or the muniipalities in case of municipal property. The biggest scandal in 2007 concerned the Sofia Central Heating Company, which is jointly supervised by a ministry and the Sofia municipality. The former director of this company was accused of stealing serious amounts of public funds. The scandal led to changes in the supervisory board of the company, and indirectly, to the resignation of a cabinet minister.
Peer Review Comments: Because of rarely initiated investigations and politically influenced management boards, sanctions are seldom imposed. The case of the Sofia Municipality is a very good example but is rather the exception from the main principle.
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| 66 | Can citizens access the financial records of state-owned companies? | |||||||
| 66a: In law, citizens can access the financial records of state-owned companies. | ||||||||
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Comments: References: Especially in case they are publicly listed. Law on the Public Offering of Shares, Chapter 8, Section IV
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| 66b: In practice, the financial records of state-owned companies are regularly updated. | ||||||||
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Comments: The questions should probably differentiate between publicly listed state-owned companies and others. References: Different models for different types of companies: the publicly listed are regularly updated and published. Audit results are generally accessible for the public. Interviews with Alexander Menkadjiev (broker), Sofia, December 2007.
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| 66c: In practice, the financial records of state-owned companies are audited according to international accounting standards. | ||||||||
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Comments: This is especially true of publicly listed companies. References: Interviews with Georgi Ganev (CLS) October 2007.
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| 66d: In practice, citizens can access the financial records of state-owned companies within a reasonable time period. | ||||||||
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Comments: References: Public Register of the Financial Supervision Commission: [ LINK ] online available for publicly listed companies - accessible for the others through different procedures, including the Law on Access to Public Information
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| 66e: In practice, citizens can access the financial records of state-owned companies at a reasonable cost. | ||||||||
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Comments: Generally, the information is either free (when online) or inexpensive. References: Public Register of the Financial Supervision Commission: [ LINK ] for publicly listed companies.
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