13 Nov 2009 16:00

Several state corporations must be re-organized before March 1

MOSCOW. Nov 13 (Interfax) - Russian President Dmitry Medvedev gave an order to Prime Minister Vladimir Putin following the inspections carried out at state corporations, the Kremlin said on Friday.

"The inspection of state corporations has revealed that the current laws do not set single criteria for defining a state corporation as a company's form of ownership," the order said.

"The lack of due monitoring of their operations in a number of cases resulted in inefficient use of public property entrusted with them," the document said.

"I therefore request that you submit proposals on re-organizing state corporations operating in a competitive environment into other forms of ownership," the president said in the order to the prime minister.

The order states that a timeframe of operations should be set for state corporations operating outside of a competitive environment and proposals made to amend legislation to guarantee the transparency of their operations and full-fledged control on the part of the state.

It stresses the need to define the responsibility of the governing bodies and executives for reaching the objectives set for the corporations, for preserving and effectively using property and also to define the size of their remuneration.

"I request you to define the indicators of the efficient operation of state corporations and draft a statute on representatives of the state in the supervisory councils of state corporations, including questions of accountability," the order states.

The order is to be carried out by March 1, 2010.