Higher officials of the Ministries are being discharged from BoDs of 50 companies


2015-05-27 16:07 GMT+8

Prime Minister prohibited heads of the ministries and agencies to work as member of BoD and ordered State Property Committee to employ experts instead of the higher officials. That decision was made in November at the plenary session of the Government.

In scope of this decision, we clarified from State Property Committee on how the board of state owned companies are changing and it has responded that the deputy ministers and state secretaries have started to be discharged. 

We interviewed with State Property Management and Representation Department V.Darkhanbaatar on that issue.

-Prime Minister Ch.Saikhanbileg assigned State Property Committee to make change in structures of state-owned company`s BoD. Have you finished discharging of the higher officials from BoDs?

-We renewed over 50 company`s board. Boards of "Dornod regions energy system" JSC, "Germon Gas" LLC, "Selenge AZZA", "Darkhan AZZA" have not changed and are operating with its old structure.

Moreover, changes in board have not changed in "Shivee Ovoo" JSC, "Baganuur" JSC, "Erdenes Tavan Tolgoi" LLC, "Erdenes Mongol" LLC, "Stock Exchange", "Development bank", "State Bank" and settlement Securities Central Depository" and "Mongolian Securities Clearing House and Central Depository“.

-470 people belong to 57 company`s board. 170 of them are higher officials in the ministries and agencies, and the heads of the departments. How the numbers have  changed?

-State and state owned 57 companies have boards. Out of 48 companies chosen their independent member of the Board of Directors in accordance with the law. Duplicated 469 members are working at total of 57 BoDs. Out of 149 of them are an independent members of BoD. 

There are six representatives of the state-owned at BoD with nine members.Specifically, experts were included at BoD at first. Secondly, representatives of energy and road NGOs were included. Then, university teachers, professors, scientists and researchers included in the representatives of the state.

-State secretary and deputy ministers of the ministries were completely discharged from BoDs?

-Currently, there is no state secretary of the ministries are in BoDs. 

-How much salary is being paid for members of state-owned company`s BoD?

-Upper limit of the salary for members of state-owned company`s BoD is MNT 380,000. However, depending on the company income some are paid with MNT 100,000-200,000.

Darkhan Metallurgical Plant is paying MNT 800,000 for the member of BoDs and it is the highest salary of at state-owned company`s BoD members.

-BoDs of the mining companies are paid with millions of MNT. Maybe its due to establishment of upper limit and experts reject the salary and refuse to work?

-Of course. Some non-governmental organizations, university teachers, professors, scientists, researchers and representatives of the private company served as a representative to the BoDs of state-owned enterprises. However, four to five people was sent their resignation letter due to small interest and small company.

-Companies hide information of their members. Information of their members must be open to the public?

-Yes. Companies must publish the phone numbers, contacts and email adresses of their BoD members on their website. In that case, staff of the company and partner companies will deliver their views to the BoD members.

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