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Minister Bogdanov: State-Owned Enterprises Cannot Operate at a Loss and Directors’ Salaries Cannot Increase

Minister Bogdanov: State-Owned Enterprises Cannot Operate at a Loss and Directors’ Salaries Cannot Increase

Ministry of Economy and Industry prepares strategy for Plovdiv Fair

‘In my first weeks as Minister of Economy I saw the need for a serious analysis of the efficiency and legal structure of the companies under the umbrella of the Ministry. These companies are commercial, they have to be managed effectively. We have seen that a good number of them have been working for years at a loss, but despite this, salaries continue to grow.’ This was announced by the Minister of Economy and Industry Bogdan Bogdanov in the programme ‘The Staircase’ of ‘Darik’.

He explained that salaries are also one of the main cost items of these companies. ‘In the salaries we saw, they were at the limits of the law, they were over BGN 14,000 for an executive director, about BGN 4,500 average salary for a board member,’ Bogdanov said.

From his words it became clear that the boards of some of the companies under the Ministry will be abolished and in others the number of members will be reduced. He also said that over 90% of the people on the boards were replaced during the caretaker government.

The Minister said that a process of optimization and improvement of efficiency in the functioning of the companies is underway. ‘We will announce public competitions so that young people with experience can join the companies. We will try to bring back Bulgarians with expertise from outside,’ Bogdanov said. Management capacity will also be enhanced. ‘We will implement a control system, we will monitor financial indicators and flows in real time,’ the Minister said, adding that currently there are companies that have not had an annual financial report for two and a half years.

Minister Bogdanov: State-Owned Enterprises Cannot Operate at a Loss and Directors' Salaries Cannot Increase

The Minister of Economy said that in a few weeks data from the audits and analyses of the financial situation of the public enterprises will be made public. Bogdanov announced that there are revelations, and the violations will be referred to the competent authorities.

The Minister also commented on the issue of the Plovdiv Fair, explaining that it should start working as intended. ‘We should be able to see our companies and institutions at exhibitions not only abroad but also in Bulgaria,’ he said. Bogdanov is adamant that through the Plovdiv Fair Bulgaria has the opportunity to attract new partners.

The Minister announced that his team is developing a strategy for the Plovdiv Fair, which will be presented to the municipal councils of Plovdiv and Varna. ‘The conversation should not only be about the problems, but about where we want to see the Plovdiv fair and how to attract foreign companies,’ he said.

Regarding the inflation figures in recent months, Minister Bogdanov said that the state is working to raise incomes to the European average. ‘One of the ways to fight inflation is to start producing here,’ he said, adding that our country’s accession to Schengen and the euro area would also have an impact on inflation and help the country’s economic stability.

Bogdan Bogdanov said that the growth of investments in the country is rising and they have doubled compared to last year. He informed that the management of the state industrial zones is being reformed so that when an investor comes, he gets ready land and starts his project quickly. There is currently increased interest for investment from companies in the battery and energy storage industry, in the automotive software and logistics sectors.

Уou can see the whole interview here.

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