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Governance of State-Owned Enterprises (SOEs)

Topic: Governance of SOEs University Involved: Central European University Year: 2014 Transparency International Chapter: TI-Slovakia

Most of the 80 SOEs in Slovakia suffer from a lack of transparency and little independence from political influence. TI's latest SOE transparency ranking showed that two-thirds of managers are recalled within a year of the elections. Moreover, SOEs provide little information to the public on their performance targets or CEO remuneration.

What are the best governance indicators for SOEs that correlate with lack of corruption? Finding good corruption indicators will help TI and the government to better guard against corruption in SOEs.

The aim of the research project is to identify indicators of ineffective use of the public funds which may also point to possible corruption practices. The research will be conducted based on the data from Slovak SOEs, but its results will aspire to be generalizable and ready for use beyond the studied country. In order to find such indicators it will be necessary to examine the dynamics between SOEs' annual financial results, their public procurement schemes, sales and leases of their assets and their relationship with the government (i.e. resources allocated to the SOE by the government). Taking all of this into consideration may reveal observable patterns that would suggest possible corruption practices at place.

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30 Dec 2013

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