— Nowadays when every state kopek counts, it is important that public funds (and this is taxpayers’ money) were used wisely and work for the future of our country.

Last week the General Prosecutor of Russia Yuri Chaika and the head of the Supervisory Directorate of President of the RF Konstantin Chuichenko reported to the President of Russia Dmitry Medvedev on joint audit of public corporations, and the president of Russia has paid particular attention to the issue of state corporations in his annual address to the Federal Assembly. The President, in particular, told about the need to conduct independent audits of corporations, to bring in each of them a model of modern management, and labour remuneration of management of these companies should be explicitly linked to indicators of costs reducing, efficiency improvement and increase of productivity, as well as to the results of adoption of new technology and innovations.

Konstantin Zaitsevdeputy chairman of the Committee on Energy of the State Duma of Russia:

Spending public funds and the efficiency of working of the companies with state participation — are indicators which should be taken into account when assessing the activity of public corporations, especially in the current situation. So, it is quite natural and perfectly understandable why this issue is given such attention from the part of the country’s leadership.

Nowadays when every state kopek counts it is important that public funds (and this is taxpayers’ money) were spent wisely and work for the future of our country, that managers of public corporations understand that their salaries will depend directly on the results achieved by their divisions. In this regard, state corporations must use the experience of non-governmental organizations: to adopt the updated management models, undergo an independent audit, apply innovative technology, improve productivity – all what the president said in his message to the Federal Assembly last week.

Positive examples of improving efficiency of state-owned corporations are already available. In particular, as far as I know, over a year Rosatom has a system of key performance indicators according to which the top management of the state corporation receives their bonus only under such conditions as absence of serious accidents at nuclear power plants, in the event of 12,5% productivity growth, absence of facts of staff over-radiation, 100 % fulfillment of the state defense order, growth of orders on hand outside the market the nuclear industry, increasing the number young professionals attracted to the work in the industry. One can judge about work efficiency of the state corporation, for example, by such outcome as follows: the majority of experts told that the second power unit of the Volgodonsk nuclear power plant will be completed at the best in 2010–2011, however “Rosatom” has managed to complete construction this year. Moreover, for the sake of funds saving the construction of the third and fourth power units of nuclear power plant had been postponed for two years ahead.

Source:rernum.ru