Court of Accounts Reports: Problems in Forest Fund Management, Healthcare and the Financial Management of State Enterprises

Poor management by the Moldsilva Agency, largely due to the lack of a register of lease contracts, led to the loss of over 300 ha of forest, illegal logging worth almost MDL 6 million and illegal clearing of over 13 ha. The state risks losing a further 220 ha. Three hospitals studied lacked plans for budget crises; they ran up debts of almost MDL 140 million to suppliers last year, and 40% of medicine requests from hospital wards were rejected. Patients also cannot freely choose their provider.

The Ministry of Finance can produce data on state enterprises only annually, because the National Bureau of Statistics publishes it yearly and some enterprises report nothing. Author Tatiana Savva argues that financial indicators alone are insufficient: the Government should set objectives for managers, link their pay to results and review the role of its board delegates, that is, overhaul corporate governance.