Among the priority areas of the EU Anti-Corruption Initiative with Integrity cities is increasing the efficiency and transparency of critically important municipal enterprises.
In collaboration with Mykolaiv, we are working on transforming a large municipal enterprises Mykolaivvodokanal. In March, the results of an Integrity Assessment were presented, based on which a Risk Mitigation Plan was developed.
One of the main recommendations is to establish corporate governance according to OECD standards to optimize processes and enhance enterprise transparency. The roadmap for implementing corporate governance was presented on 28 June.
“Efficiency, effectiveness, and accountability of Mykolaivvodokanal’s operations not only impact the reputation of the enterprise but also the reputation of the city and, consequently, our country. Implementing corporate elements is one of the tools that can help bring standards up to European ones,” emphasised Taras Sluchyk, Team Lead of the Integrity Cities component of the EUACI.
The roadmap was developed by consultants from Vasil Kisil& Partners.
Five key recommendations for improving corporate governance at ME:
– Define the strategy and long-term goals of the enterprise.
– Establish a supervisory board.
– Select a professional and independent composition for the supervisory board.
– Ensure a transparent selection process for members of the supervisory board.
– Implement corporate governance tools, including internal control, risk management, compliance, audit.
The EUACI will continue to support the city in implementing the Roadmap.
“Mykolaivvodokanal is in my key focus; the enterprise is currently receiving significant budgetary support and support from our international partners. To increase trust from partners and citizens and ensure effective management of the municipal enterprise during the challenging time, we are working to eliminate any human factors that lead to corruption, by implementing corporate governance at the enterprise,” stated Mykolaiv City Mayor Oleksandr Sienkevych.
The event also included a public discussion on Corporate Governance for Efficiency and Integrity.
“Parliament is working on a corporate reform of utilities. ME Mykolaivvodokanal is a pilot project, and it is always difficult to be the first. But this is a very important step. We will be able to measure the results and evaluate the effectiveness of the reform of this pilot project and then integrate their experience into the legislation,” said MP Oleksiy Movchan during the discussion.
Full presentation recording: http://surl.li/hiwdiu
