Government orders audits ahead of state asset sales
New Prime Minister Vasile Tofan has announced plans for a large-scale audit of state property and the subsequent sale of selected assets. The proposals, set out in the new government’s immediate programme, suggest that the cabinet is ready to begin restructuring public ownership as part of its wider reform agenda linked to Moldova’s European integration.
Under the plan, state-owned enterprises will undergo urgent audits, while their property will be valued by what the government describes as independent experts. Assets deemed to have no strategic importance could then be transferred into private ownership through state asset sales.
Tofan said the government first needed a complete picture of the property owned by Moldova, its market value and the potential revenue that could be raised from its disposal. The authorities will also assess how efficiently state property is currently being used, with a full inventory taking place alongside audits of public enterprises.
The announcement has prompted questions over how the government will determine whether particular assets are being managed effectively. Only a day earlier, Tofan had spoken of the unusually strong profitability of Moldova’s national airport, which also remains in state ownership.
The article questions whether even profitable assets could later be declared inefficient and prepared for privatisation. Such concerns are likely to depend on the criteria used during the audits and on how transparently the authorities explain their conclusions.
Restructuring and private investment proposed
The government has also presented a less radical option, described by Tofan as an opportunity for a “restart”. State enterprises could be restructured or converted into joint-stock companies rather than sold outright.
Their shares could then be listed on the stock market and acquired by private investors. According to the government, this approach would increase the transparency of corporate management and create stronger incentives for efficient operation.
Full state asset sales would be reserved for enterprises judged to have no strategic value. Tofan argues that the state should not retain property merely for the sake of ownership and that enterprises managed inefficiently should be transferred to more capable operators.
He also identified corruption as one of the causes of poor management at state enterprises. Critics of the plan argue, however, that selling public property addresses the consequences rather than the source of the problem, and that corrupt officials should be held accountable before state assets are transferred into private hands.
The programme could therefore create significant opportunities for investors seeking to acquire factories, enterprises and other organisations. Its opponents warn that, unless valuations and sale procedures are subject to strict public scrutiny, valuable assets could be sold below their true worth.
The success of the proposed reforms will depend on how the government defines strategic importance, selects independent valuers and prevents politically connected investors from benefiting from the process. Without clear safeguards, state asset sales may raise as many questions about accountability as they answer about efficiency.
