The Montenegrin government is preparing a law on the management of state-owned enterprises, which aims to reduce political influence in the sector. The law will establish clear criteria for appointing board members and management through transparent procedures. The Ministry of Finance (MF) emphasized that the reform’s goal is to strengthen corporate governance and improve efficiency, transparency, and accountability within state-owned enterprises.
Regarding the performance of state companies, MF noted that 68% of companies operated positively last year, but a third still faced losses. The sector is recovering from the global health crisis but continues to face challenges from international conflicts that have driven up operational costs. The total revenue of state enterprises reached over 1 billion euros, approximately 17% of Montenegro’s GDP.
The law will also involve the Association of Managers of Montenegro (AMM), which believes that state companies should be treated as vital parts of the economy and aims to improve their profitability and sustainability. AMM’s president, Budimir Raičković, stressed that the law should ensure transparency, accountability, and reduce political influence, especially regarding hiring decisions.
In response to the question of whether the law could entirely remove political influence, Raičković emphasized that the process of depoliticization will depend on how the law is implemented in practice. He also called for a stronger role for women, ongoing education for management, and the introduction of ESG (Environmental, Social and Governance) standards in reporting.
The law will require managers to have substantial experience and qualifications, especially for executive roles. Raičković pointed out that successful management should be based on competence rather than political affiliation. While political influence has historically played a role in managing state companies, the reform aims to professionalize and depoliticize these entities.
In the region, Montenegro is the only country that has not yet established clear criteria for appointing leadership in state-owned companies. Prof. Dr. Branislav Radulović, a lawyer and senator, pointed out that without these reforms, Montenegro risks falling behind regional standards.
The Ministry of Finance is working on the final draft of the law with support from international experts, ensuring that it aligns with best practices. Additionally, a public registry of state-owned companies is being developed, which will help track financial performance and improve transparency in the sector.
