Podgorica, (MINA-BUSINESS) – According to Radenko Vujosevic, Chair of the Public Utilities Committee of the Chamber of Commerce of Montenegro (PKCG), the implementation of the new Law on the Governance of State-Owned Enterprises raises a number of issues regarding the alignment of local public utility companies' operations with the applicable legal framework.

Speaking at a committee meeting, Vujosevic highlighted concerns relating to the relationship between founding acts and company statute, the organization of governing bodies, the transfer of certain powers from founders, and potential conflicts between the laws governing state-owned enterprise, local administrations, public utility services and commercial companies.

Vujosevic recalled that during the public consultation process, the Chamber of Commerce submitted comments and recommendations on the draft law to the Ministry of Finance, some of which were accepted through amendments. 

However, he said a number of issues remain unresolved and require further clarification.

Director General of the Directorate for Central Harmonization and Development of Internal Controls at the Ministry of Finance, Minas Trubljanin, presented the objectives of the new legislation, saying it forms part of a broader reform of governance in state- and municipally owned enterprises.

He said the law is aligned with international best practices and the recommendations of the European Commission and international financial institutions, and is intended to professionalize management structures, improve corporate governance and establish uniform standards for the exercise of state ownership.

Sanja Zivkovic of the Union of Municipalities of Montenegro (ZOCG) highlighted the need for further harmonization of certain provisions of the new law with legislation governing the local self-government system.

Business representatives at the meeting said that many public utility companies provide services of public interest that are largely financed from municipal budgets, and expressed concern about the application of provisions relating to the requirement to generate market-based revenue.