A government-appointed commission will assess how state-owned enterprises earmarked for privatization should be managed or sold to maximize financial returns, Parliamentary Finance and Budget Committee Chair Paata Kvizhinadze said.
According to Kvizhinadze, the government approved a new state enterprise reform plan in October under which each company will be assessed individually. Enterprises deemed strategically essential to the country will remain state-owned regardless of whether they are profitable or loss-making.
For other companies, the commission will evaluate the most beneficial disposal method, including bankruptcy followed by a sale, direct privatization or a merger with another company. Representatives from several ministries will participate in the process to identify each enterprise’s problems and determine the appropriate course of action.
Kvizhinadze also commented on audit findings concerning financial irregularities and management shortcomings at state-owned enterprises, saying audits are a preventive measure used in Georgia and Europe. He added that repeated deficiencies identified in subsequent inspections would prompt stricter scrutiny, including referrals to ministers for further review.
