Commitment: Openness and accountability of state-owned enterprises
Commitment Description:

Openness and accountability of state-owned enterprises (SOEs) are among the key issues of Open Government Partnership in terms of increasing corporate responsibility. To address the issue, the National Agency of State Property (NASP) undertook the responsibility to ensure the availability of information on 100% SOEs under the management of the NASP. Additionally, the enterprises will be committed to proactively publish reports, including both the financial and conceptual parts. To increase the accountability and corporate responsibility of enterprises, it is important that the NASP planned to develop a corporate management guide, defining the general enterprise management principles and directions.

Outcome: Transparency of The SOEs activity has been increased and a unified corporate management standard has been established
Timeline: Start date - June 2018, End date - December 2019
OGP Thematic Areas: Transparency, Accountability
Reporting Period: 2019, Annual
Lead Agency: LEPL – National Agency of State Property

To improve the accountability of SOEs, the NASP developed a unified template (a form containing information about the enterprises) available on the Agency’s website(www.nasp.gov.ge). The template was created to ensure openness and transparency of SOEs in compliance with International Financial Reporting Standards (IFRS) and includes the following information:

• Name of enterprise
• Identification code
• State share
• Field of activity
• Legal address
• Actual address
• Supervisory board
• Contact information (person in charge/ representative, first name, last name).

Information gathered with help of this form will support NASP to present the overall picture of the state-owned enterprises in a unified manner to the society for future use. The introduction of a sound reporting and monitoring system will ensure effective management of state enterprises.

A draft Guide on the management of enterprises established with more than 50% state sharing was developed in the reporting period. It defines the general principles and foundations of SOEs’ management. The approval of the Corporate Management Guide depends on the adoption of the new Law of Georgia On Entrepreneurs. After adopting the Law, certain principles of the legal act will be reflected in the Guide on Management of Enterprises.

According to the Secretariat's assessment, the commitment is fully implemented within the Action Plan timeline, as both milestones envisioned by the plan were fully achieved.