Big changes for state-owned companies

With a bill put to public consultation, the Ministry of Economy and Finance has moved forward with the radical restructuring of the Superfund or Growthfund. 

Hailed by Economy and Finance Minister Kostis Hatzidakis as an “important reform” and “proof of progress,” the bill foresees the implementation of the “PPC (Public Power Corporation) model” for the state-controlled companies (DEKO) that are subsidiaries of the Superfund.

At the same time, procedures have been launched for the absorption of the Hellenic Financial Stability Fund (HFSF) and state asset utilization fund (TAIPED) by the Superfund and the creation of a National Investment Fund, which will be endowed with 300 million from the state. 

The PPC model for public enterprises of the Superfund concerns Hellenic Post (ELTA), TIF Helexpo, the Central Markets and Fisheries Organization and the Central Market of Thessaloniki, GAIAOSE, Hellenic Salt Works, the Corinth Canal Company and OASA, together with its wholly owned subsidiaries OSY and STASY.

According to the draft law, these DEKOs will be able to attract private sector executives through a simple procedure, based on decisions of the CEO of each company. The current procedure takes a lot of time, is extremely bureaucratic and is a deterrent for anyone seriously interested in applying for an executive position at one of the Superfund’s subsidiaries, Hatzidakis acknowledges.

Additionally, the three-year term of office for executives (directors and general managers) has been extended to four years, renewable once. 

However, flexibility is provided in the remuneration of the executives of ELTA and other entities outside the general government, while in the subsidiaries within the general government (public transport and GAIAOSE) the remuneration will be in line with the model of the Single Social Security Entity (EFKA).

The draft law also makes the recruitment procedures for the staff of these public utilities more flexible, with a limited but essential role for the Supreme Council for Civil Personnel Selection (ASEP): checking the legality of the notice within 10 days and involving one of its members in the examination of objections during the recruitment procedure.

In the same vein, flexibility in procurement is also enhanced, in line with EU law, as stressed by the Ministry of Finance. The procurement regulation will be submitted to the Single Public Procurement Authority (HSPPA), which will have the possibility to express its opinion within 60 days as to its compatibility with EU law. Another important change is the establishment of independent disciplinary boards without the participation of trade unionists.