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Prime Minister dissatisfied with state property management

The Prime Minister of Kyrgyzstan Mukhammedkaly Abylgaziev criticized the management of the state assets. The press service of the government reported.

Today, the head of the Cabinet held a working meeting on the activities of joint-stock companies with state-owned shares and state enterprises. Mukhammedkaly Abylgaziev noted that the majority of joint-stock companies with state-owned shares and state-owned enterprises were unprofitable and lossmaking because of low management quality.

At least 878 state enterprises for 2017 brought to the country’s budget only 266 million soms. This shows the low efficiency of the companies.

«If private companies work with low profitability, they are dissolved. As for the state companies — their employees continue to receive a salary, and the companies — subsidies. Inadequate salaries, disproportionate to their activities, are set in some state-owned companies. Bonuses and premiums must be approved depending on the annual income and company performance. I consider it immoral, when employees of unprofitable enterprises receive a high salary,» said Mukhammedkaly Abylgaziev.

The Prime Minister noted that if the situation did not change, then it was necessary to sell the companies through the privatization program. And the money should be given to support business through the issue of concessional loans and other mechanisms.

We will better receive taxes from the operating business, than to further keep the unprofitable companies. This will have a positive impact on the activities of enterprises themselves

Mukhammedkaly Abylgaziev

According to the State Property Management Fund, from 2014 to 2017, the profitability of the assets of joint-stock companies with the state share decreased from 7.76 to 6.41 percent. At least 23 out of 98 existing state-owned enterprises do not submit activity reports at all.

The Prime Minister instructed in a month to conduct a detailed analysis of the indicators of profitability of the state-owned companies, as well as to review wages depending on their performance. Together with this, he instructed to make proposals on the reorganization and liquidation of inefficient state companies.