On July 21, 2023, Institute Alternative submitted an initiative for the inspection of companies owned by the state and local government units regarding the violation of the Law on Salaries of Employees in the Public Sector.
Article 10 of the Law on Salaries of Employees in the Public Sector stipulates that companies owned by the state and local government units that incurred a loss in the previous year are required to reduce the total salary fund by 10% in the first year and an additional 5% in the following calendar year.
Based on publicly available data (financial reports of these enterprises available in the public records of the Revenue and Customs Administration), it is clear that some companies did not comply with this provision of the law, did not reduce the salary fund, and in some cases, significantly increased it. This applies to 21 companies at the central level and 48 companies at the local level (owned and/or founded by the local government).
Our initiative was included in the Budgetary inspection oversight plan that was adopted in January 2024 and officially published on the website of the Government of Montenegro on February 7, 2024. The work plan includes an overview of the subjects of supervision, areas of supervision, the time period of the oversight, and the schedule of the inspection for each inspector individually. In addition to planned regular oversights, Budgetary inspection will also conduct extraordinary inspections as ordered by the minister and based on reports, initiatives, complaints, and requests for inspection.
Text was created within the project “Civil Society for Healthy, Effective, Sustainable, and Transparent Public Enterprises (BEST SOEs),” supported by the European Union, with co-financing from the Ministry of Public Administration. The content of the text is the sole responsibility of the Institute Alternative and does not necessarily reflect the views of the European Union and/or the Ministry of Public Administration.
