Commitments

10 transparency in state management

Country: Latvia
Action Plan: Latvia National Action Plan 2017-2019
Year Action Plan: 2017
Start Date: 7/1/2017  |  End Date: 6/30/2019

From the Action Plan

 
OPENNESS AND ACCOUNTABILITY OF PUBLIC MANAGEMENT OF THE PARTIES The corporation OPENNESS AND ACCOUNTABILITY OF PUBLIC
MANAGEMENT OF THE PARTIES The corporation
DEADLINE:
2017 2nd half - 2019 1st half
WHAT ARE THE STATE AND THE PUBLIC INTEREST ISSUES WHICH HELPS MEETING THIS
COMMITMENT?
Public persons capital - state and municipal enterprises - plays an important role in the national economy,
as they provide essential services and goods production and management of the national development and
safety-critical assets. In 2015 the state capital total assets was 8.1 billion euro. State capital is also an
important employer: in 2015, they worked 52 239 employees.
Public party capital like private sector workers companies should ensure their operational efficiency and
professionalism and be economically sustainable and accountable. However, they also comply with the state set
the general strategic goals and objectives and to ensure that public resources are used and managed in the public
interest so as to bring the country and the public the greatest benefit. It is therefore particularly important to ensure
an open, responsible and fair management of public persons of limited liability companies. OECD State-owned
enterprise management guidelines 59 states that:
• State capital required to meet high standards of transparency and must be subjected to the same high
quality accounting, disclosure and compliance standards as the stock exchange quoted firms;
• national capital to provide financial and non-financial information about the company in accordance with the
high quality internationally recognized standards of corporate disclosure, particularly in areas that are important
for the state as owner and the public;
• the responsible authority ensures continuous reporting for the State capital and annually publish a
single report as well as make up a publicly accessible Web site.
January 1, 2015 came into force in public person shares of limited liability companies and Management Act,
which was followed by significant reforms in corporate governance. For example, it was overrated state
participation capital companies, limited liability companies set the overall strategic objectives, work began on
capital companies medium-term strategies were significantly improved access to information about public
persons and capital
59 OECD. "OECD Guidelines on corporate governance of State-Owned Enterprises". Paris: OECD Publishing, 2015th
View: http://www.oecd.org/corporate/guidelines-corporate-governance-SOEs.htm
10th
COMMITMENT
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 48
their performance, developed a clear and open person public limited liability companies of board members
for the selection and appointment procedure, the largest state capital refurbished councils, strengthened
corporate performance review and disclosure mechanism.
Center for Public Policy "PROVIDUS" points out: "the introduction of the reform, the first stage of a significant
increase in state enterprises openness. The public has the opportunity to gain a wealth of information on public
enterprises - government structure, key financial indicators, as well as operational objectives. " 60
Pārresoru Coordination Center (hereinafter - PKC) since 2015, the holders of public limited liability
companies and the state capital of management coordinating body tasks. One of PKC tasks is to inform
the public and make accessible information on the state capital operation and its results. 2017 PKC
tīmekļvietni- created a database of state capital management 61, which gathers information on the regulatory
framework and its changes, capital company performance and current events management issues.
Tīmekļvietni- database in the coming years need to improve, with the new information on the state capital.
An important contribution to the state capital management and operational transparency in ensuring that also
complies with the OECD guidelines, prepared by the PKC annual reviews of the national capital and
state-owned shares. So far PKC prepared statements for 2014 and 2015. Significant reports to constantly
improve. For example, a review of 2016 is intended to provide more information about each state capital, as
well as more non-financial information. 62
PKC also developed guidelines for public disclosure of information and public capital to shareholders, which may
be used as a useful road map to effectively and uniformly provide the public with material information about a
public person with share capital activity. Cabinet on 20 June 2017 approved amendments to the authentic
person with share capital and shareholding management law and forwarded to the Parliament. The bill intends to
extend the amount of information made public. State capital in addition to the existing requirements will be made
public statute, the board or council (if one exists) bylaws or equivalent document that regulates its work, and
information about each individual council (if one exists) and member of the board (ie. See. Professional work
experience, education, information on positions in other capital, The term of office). Also it provides that the
equivalent information as a public party capital will be made public and their dependent capital. If the bill
approved by parliament, the new requirements are essential to promote and facilitate it
effective implementation.
So far, the big national capital was under no obligation to disclose non-financial information. From 2017, the
obligation to provide for 2014 of 22 October the European Parliament and
60 Center for Public Policy "PROVIDUS", "Transparency - Transparency International". "State capital companies
governance reforms at the first assessment. " Riga 2017, p.35.
View: http://delna.lv/wp-content/uploads/2017/03/PROVIDUS-Kapitalsabiedribas-petijums-2017.pdf 61 View: www.valstskapitals.lv
62 Annual reports available in JCR Web site in English and Latvian. View: http://www.pkc.gov.lv/
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 49
Council Directive 2014/95 / EU amending Directive 2013/34 / EU with regard to certain large companies and groups of
non-financial and diversity information disclosure. Directive reference is made to the European Parliament on 6 February
2013 resolution on "Corporate Social Responsibility - responsible and transparent business practices and sustainable
growth" 63 and resolution of "Corporate Social Responsibility - promoting the interests of society and the path to
sustainable and inclusive recovery" 64, which it recognized that non-financial information helps to identify, monitor and
manage business performance and impact on society.
Latvian companies have several examples of good practice, because they voluntarily provide non-financial information, such
as JSC "Latvenergo" and JSC "Latvian Railway".
WHAT IS COMMITMENT?
In order to improve the transparency and accountability of public limited liability companies in the management and operation of:
• continue to inform the public of the state capital management and operation, including encouraging non-financial
indicators and sustainability reports should be published;
• lead to additional disclosure requirements state capital intended for the Cabinet on 20 June 2017,
supported the amendment authentic person with share capital and shareholding management
law, effective implementation;
• promote transparency and accountability of the national and local government capital management and operation
by promoting best practices;
• improved and expanded PKC's Web-database of state capital management, including the state
capital profiles. Assess the possibility of the place and corporate non-financial data;
• promote cooperation with government institutions in order to ensure the exchange of the necessary
data;
• develop annual public reports to ensure they increase the use of information on national capital
and their work in the public interest, as well as those including an informative summary of each
state capital;
• estimate Options, through other countries' best practices, to build quarterly
reports on the state capital, the state as the owner quickly
and be able to receive data in a timely manner react potential risk cases;
• to promote the uniform application of law in transparency requirements for public capital
compliance as a national as well as local government and associated persons capital t. see.
giving advice;
• identify whether a sufficient amount and the quality of laws and regulations in certain state and
municipal capital disclosure requirements are met, and promote best practices.
63 See: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2013-0049&language=LV&r
ing = A7-2013-0017
64 See: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2013-0050&language=LV
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 50
HOW TO COMMITMENT will be introduced and the solution to these problems?
The commitment will be implemented with the introduction of the development of activities and initiatives that focus on transparency and
accountability of public persons capital.
In implementing this commitment will contribute to raising public awareness and openness about public persons with share capital operation
and management and enhancement of responsibility.
For more information on state capital management may also publish open data portal or to arrange them in
the form of open data and to describe the open data portal (link with the plan's commitment to 3).
HOW TO MEET COMMITMENT OGP VALUES?
OGP commitment to two values - openness and accountability. Commitment will increase the transparency and
accountability of the community by providing more and better information about public persons capital, raising awareness of
the important role and contribution of the potential risks and thus promoting responsible and informed public persons of
limited liability companies management.
ADDITIONAL INFORMATION
Linking with international instruments
Commitment to promote compliance with the OECD Latvian State-owned corporate governance guidelines and the OECD
Principles of Corporate Governance.
INTERMEDIATE OBJECTIVES
1. State shareholding, which ensures that all statutory disclosure requirements, the proportion of all
public shareholders (result - 100%)
06.30.2018.
2. The national capital company, which provides all the statutory disclosure requirements,
The proportion of the total national capital
(Result - 100%)
31.12.2018.
LATVIAN OPEN MANAGEMENT THIRD NATIONAL ACTION PLAN 51
3. The national capital company management issues in a dedicated conference (result - 1
Conference every year)
31/12/2019
4. The national capital company that develops non-financial reports, the number (> 5)
31/12/2019
RESPONSIBLE PUBLIC AUTHORITIES
Pārresoru Coordination Center
OTHER MEASURES IN IMPLEMENTATION OF NATIONAL INSTITUTIONS
INVOLVED
Environmental Protection and Regional Development
MEASURE THE IMPLEMENTATION OF RELEVANT PARTNERS
Association "Baltic Corporate Governance Institute" Center
for Public Policy "PROVIDUS" Latvian Free Trade Union

Lead Institution: Pārresoru Coordination Center


Support Institution: Environmental Protection and Regional Development MEASURE THE IMPLEMENTATION OF RELEVANT PARTNERS Association "Baltic Corporate Governance Institute" Center for Public Policy "PROVIDUS" Latvian Free Trade Union

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From the IRM Review

 

Overview

Design

Specificity

Not Reviewed
None
Low
Medium
High

Relevant to OGP values

Potential Impact

Not Reviewed
None
Unclear
Minor
Moderate
Transformative

Implementation

Completion at Midterm

Not Reviewed
Unclear
Not Started
Limited
Substantial
Complete

Completion at End of Term

Not Reviewed
Unclear
Not Started
Limited
Substantial
Complete

Results

Did it Open Government?

Worsened
Did Not Change
Minor
Major
Outstanding


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