{"id":44103,"date":"2015-10-27T19:21:50","date_gmt":"2015-10-27T19:21:50","guid":{"rendered":"http:\/\/uacrisis.org\/?p=36770"},"modified":"2015-11-01T20:40:04","modified_gmt":"2015-11-01T17:40:04","slug":"36770-volodimir-demchishin-9","status":"publish","type":"post","link":"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9","title":{"rendered":"Heads of state-owned companies to be appointed and retained in line with best international practice \u2013 Energy Minister"},"content":{"rendered":"<p><a href=\"https:\/\/www.youtube.com\/watch?v=mMQW1BQpz-E\" target=\"_blank\" rel=\"noopener\">WATCH IN ENGLISH<\/a><\/p>\n<p><em><strong>Kyiv, October 27, 2015.<\/strong> <\/em>Ukraine\u2019s Ministry of Energy and Coal Industry manages 280 companies. In the majority of cases such management of state-owned enterprises is ineffective. This leads to a situation when the quality of services these companies offer does not meet the price level they request. There are several reasons for that: firstly, most state-owned companies are natural monopolies, secondly, management quality does not meet modern standards. \u201cWe can change this situation for the better with two main tools: change heads of state-owned companies on a competitive basis and make the companies use their funds in a more effective way,\u201d said Volodymyr Demchyshyn, Minister of Energy and Coal Industry at a press briefing at Ukraine Crisis Media Center.<\/p>\n<p>The Minister presented 34 companies that have held competitive selection processes. The selection committee includes 15 members and decisions are made by consensus. The main challenge they face is a lack of individuals wishing to take on serious responsibility and work in a transparent way for relatively low remuneration as a state-sector \u00a0manager. It happens that there might be only one applicant, in such a case the competition is re-announced,\u201d the Minister said. He also added that corruption remains a huge problem \u2013 thus it became a reason why managers at some companies had to be re-selected. The Minister elaborated that \u201cit is not possible to overcome corruption if salaries are not raised, if the remuneration mechanism for the manager and staff at key positions is not defined.\u201d He also emphasized that any abuse of power by newly selected managers will receive a rigorous reaction. \u201cIncidents with corruption are noted daily and we do pass them on to respective agencies [\u2026] Directors have been appointed based on fair competition and if they do not meet the transparency criteria they need to be fired,\u201d emphasized Demchyshyn.<\/p>\n<p>The Minister noted that formulating a financial plan and reporting is just as important as changing management when it comes to efficiency of the state-owned companies as \u201cthe approved financial plan may optimize expenditure, and form key factors of effectiveness that will serve as a benchmark for the head of the company.\u201d For this purpose several auditors were engaged in the work of the financial unit, said Demchyshyn. \u201cMany companies are now against the practice of having their financial plans approved. You\u2019ve heard the discussion on Naftogaz that suggests switching to a new corporate management system. The principles in question are generally accepted and are operational in EU member states. Whether these instruments or the powers of the steering committee are going to work under Ukrainian conditions, especially with state-owned companies and especially with the ones that get additional financing from the state budget, is quite a serious question. I am not taking a rigid position I am only urging to analyze the risks,\u201d the Minister said. \u201cBefore the companies are independent it is a bit premature to have their powers passed to independent directors.\u201d<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WATCH IN ENGLISH Kyiv, October 27, 2015. Ukraine\u2019s Ministry of Energy and Coal Industry manages 280 companies. In the majority of cases such management of state-owned enterprises is ineffective. This leads to a situation when the quality of services these companies offer does not meet the price level they request. There are several reasons for [&hellip;] <a class=\"g1-link g1-link-more\" href=\"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9\">More<\/a><\/p>\n","protected":false},"author":17,"featured_media":44104,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":[],"categories":[705],"tags":[],"section":[648],"form":[31956],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Heads of state-owned companies to be appointed and retained in line with best international practice \u2013 Energy Minister | UACRISIS.ORG<\/title>\n<meta name=\"description\" content=\"https:\/\/www.youtube.com\/watch?v=vuPWIZw_tow WATCH IN ENGLISH Kyiv, October 27, 2015. Ukraine\u2019s Ministry of Energy and Coal Industry manages 280 companies. | Uacrisis.org\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Heads of state-owned companies to be appointed and retained in line with best international practice \u2013 Energy Minister | UACRISIS.ORG\" \/>\n<meta property=\"og:description\" content=\"https:\/\/www.youtube.com\/watch?v=vuPWIZw_tow WATCH IN ENGLISH Kyiv, October 27, 2015. Ukraine\u2019s Ministry of Energy and Coal Industry manages 280 companies. | Uacrisis.org\" \/>\n<meta property=\"og:url\" content=\"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9\" \/>\n<meta property=\"og:site_name\" content=\"Uacrisis.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/uacrisis\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-10-27T19:21:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-11-01T17:40:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/uacrisis.org\/wp-content\/uploads\/2015\/10\/Demchyshyn-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"682\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@uacrisis\" \/>\n<meta name=\"twitter:site\" content=\"@uacrisis\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u041c\u0430\u0440\u0456\u044f \u0404\u043c\u0435\u0446\u044c\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Heads of state-owned companies to be appointed and retained in line with best international practice \u2013 Energy Minister | UACRISIS.ORG","description":"https:\/\/www.youtube.com\/watch?v=vuPWIZw_tow WATCH IN ENGLISH Kyiv, October 27, 2015. Ukraine\u2019s Ministry of Energy and Coal Industry manages 280 companies. | Uacrisis.org","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9","og_locale":"en_US","og_type":"article","og_title":"Heads of state-owned companies to be appointed and retained in line with best international practice \u2013 Energy Minister | UACRISIS.ORG","og_description":"https:\/\/www.youtube.com\/watch?v=vuPWIZw_tow WATCH IN ENGLISH Kyiv, October 27, 2015. Ukraine\u2019s Ministry of Energy and Coal Industry manages 280 companies. | Uacrisis.org","og_url":"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9","og_site_name":"Uacrisis.org","article_publisher":"https:\/\/www.facebook.com\/uacrisis\/","article_published_time":"2015-10-27T19:21:50+00:00","article_modified_time":"2015-11-01T17:40:04+00:00","og_image":[{"width":1024,"height":682,"url":"https:\/\/uacrisis.org\/wp-content\/uploads\/2015\/10\/Demchyshyn-2.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_creator":"@uacrisis","twitter_site":"@uacrisis","twitter_misc":{"Written by":"\u041c\u0430\u0440\u0456\u044f \u0404\u043c\u0435\u0446\u044c","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Organization","@id":"https:\/\/uacrisis.org\/uk\/#organization","name":"Ukraine crisis media center","url":"https:\/\/uacrisis.org\/uk\/","sameAs":["https:\/\/www.facebook.com\/uacrisis\/","http:\/\/youtube.com\/UACrisisMediaCenter","https:\/\/twitter.com\/uacrisis"],"logo":{"@type":"ImageObject","@id":"https:\/\/uacrisis.org\/uk\/#logo","inLanguage":"en-US","url":"https:\/\/uacrisis.org\/wp-content\/uploads\/2019\/10\/header_logo-1.png","contentUrl":"https:\/\/uacrisis.org\/wp-content\/uploads\/2019\/10\/header_logo-1.png","width":250,"height":90,"caption":"Ukraine crisis media center"},"image":{"@id":"https:\/\/uacrisis.org\/uk\/#logo"}},{"@type":"WebSite","@id":"https:\/\/uacrisis.org\/uk\/#website","url":"https:\/\/uacrisis.org\/uk\/","name":"Uacrisis.org","description":"Ukraine crisis media center","publisher":{"@id":"https:\/\/uacrisis.org\/uk\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/uacrisis.org\/uk\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9#primaryimage","inLanguage":"en-US","url":"https:\/\/uacrisis.org\/wp-content\/uploads\/2015\/10\/Demchyshyn-2.jpg","contentUrl":"https:\/\/uacrisis.org\/wp-content\/uploads\/2015\/10\/Demchyshyn-2.jpg","width":1024,"height":682},{"@type":"WebPage","@id":"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9#webpage","url":"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9","name":"Heads of state-owned companies to be appointed and retained in line with best international practice \u2013 Energy Minister | UACRISIS.ORG","isPartOf":{"@id":"https:\/\/uacrisis.org\/uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/uacrisis.org\/en\/36770-volodimir-demchishin-9#primaryimage"},"datePublished":"2015-10-27T19:21:50+00:00","dateModified":"2015-11-01T17:40:04+00:00","description":"https:\/\/www.youtube.com\/watch?v=vuPWIZw_tow WATCH IN ENGLISH Kyiv, October 27, 2015. 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