Agency for Monitoring and Evaluation of Public Enterprise Performance to Collect Over 100 Million Lei from State-Controlled Companies
The Agency for Monitoring and Evaluation of Public Enterprise Performance (AMEPIP) is set to collect over 100 million lei from state-controlled companies this year, according to calculations by Profit.ro. AMEPIP, under the Government’s authority, has determined that it will collect a monitoring fee of 0.09% of the total revenues of public enterprises, as reported in the annual financial statements for 2023.
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Approximately 1,200 state-owned companies that have submitted data to the Ministry of Finance reported total revenues of 116.7 billion lei last year, so the fee collected by the agency could reach 105 million lei.
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Government Agency Monitors Corporate Governance
Over 1,200 companies have reported their data to the government agency responsible for monitoring corporate governance. These companies, which are mainly state-controlled entities including major energy corporations, are expected to generate the majority of the agency’s revenues. Additionally, hundreds of other inactive companies are also under the agency’s supervision.
Role of AMEPIP
AMEPIP operates under the government and the coordination of the Prime Minister. The institution is responsible for coordinating and monitoring the implementation of actions and policies related to corporate governance within public authorities, as well as enforcing sanctions for identified violations.
Uncertain Revenue Estimates
The agency has not yet provided an estimate for the revenues it expects to collect this year through monitoring fees. According to the current legislative framework, AMEPIP is tasked with ensuring compliance with corporate governance standards and taking action against any deviations.
Implementation of monitoring fees for public enterprises
Starting from the financial year 2023, a monitoring fee of 0.09% of the total revenues of public enterprises, as determined in the annual financial statements, will be implemented. This fee is in line with other fees set by law and collected by similar authorities and agencies. As there is no previous data on collection, AMEPIP will have a final estimate of the amounts collected after the payment deadline expires.
It is important to note that AMEPIP does not aim to put additional pressure on the financial situation of these companies. On the contrary, by implementing corporate governance principles and selecting board members based on transparency and integrity criteria, it supports public enterprises to become more efficient and transparent. Ultimately, the goal is to attract investments that will generate better job opportunities.
Monitoring and Enforcement of Board Activities
AMEPIP monitors the activity of corporate boards by introducing key performance indicators, and failure to meet these indicators may lead to the removal of board members by the general assembly of shareholders. According to the provisions of Emergency Ordinance 109/2011, revoked members are prohibited from serving on boards for a period of 5 years,” AMEPIP responded to inquiries from Profit.ro.
Financial Resources and Budgeting
Revenue from monitoring fees ensures the financial resources necessary for the institution’s operations. “The amounts collected through the application of a monitoring fee of 0.09% on the total revenues of public companies will ensure the establishment of the financial resources required for the institution’s operations. The agency’s budget is comprised of own revenues and subsidies from the state budget and is approved by the General Secretariat of the Government. After the collection period of the fees,
AMEPIP Budget for 2024
The budget of AMEPIP for 2024 predicts revenues of 17.35 million lei, out of which 16.35 million lei will come from subsidies. The expenses are estimated at 17.35 million lei, with 10 million lei allocated for personnel and 5.4 million lei for goods and services. AMEPIP has several dozen employees, whose salaries are 50% higher compared to those in the salary grids of central administration.
Regarding the monitoring fee, the budget will be adjusted and approved in accordance with the legal provisions applicable to public institutions funded from own revenues and subsidies. As for the destination of these funds, the collected amounts will be used in accordance with the approved revenue and expenditure budget, respecting legal provisions,” stated AMEPIP.
State-Owned Companies
State-owned companies are businesses that are owned and operated by the government. These companies are usually established to provide essential services to the public, such as transportation, utilities, and healthcare. State-owned companies are often seen as a way for the government to ensure that these vital services are provided to citizens at an affordable cost.
One of the main advantages of state-owned companies is that they can be used to promote social welfare and economic development. By controlling key industries, the government can ensure that these sectors are operating in the best interest of the public. State-owned companies can also help stimulate economic growth by investing in infrastructure and creating jobs.
However, state-owned companies are not without their drawbacks. Critics argue that these companies can be less efficient and innovative than their private counterparts. Bureaucracy and government interference can slow down decision-making processes and hinder the company’s ability to compete in the market.
In conclusion, state-owned companies play an important role in providing essential services and promoting economic development. While there are challenges associated with these companies, they can be a valuable tool for governments to ensure that key industries are operating in the best interest of the public.
