select CategoryID, istopic from ( SELECT CategoryID, EXISTS (SELECT * from topics_equivalence te WHERE te.categoryid=acl.categoryid) as istopic FROM eZArticle_ArticleCategoryLink acl WHERE acl.ArticleID=110158 ) as subquery

ESM Managerial Contracts Harmful to Public Interest

The National Commission on Prevention of Corruption will soon rule whether the management of “ESM” (Electric Power Supply Company) signed managerial agreements that could prove harmful to the public interest. The members of the Commission say that the reviewed carefully all nine contracts signed by Pande Lazarov, the General Manager, his Deputy and the seven sector managers. Unofficially, the Commission has the greatest problem with the severance payments that protect the members of the managerial stuff in case they lose their positions over the coming four years, although they were aware about the coming privatization. The contracts, which the Prime Minister Buckovski was forced to present in public, are clear that the terms in office for the managerial stuff will expire on December 27, 2008. The new investor is expected to enter the ESM by the end of this year. Should the new ownership decide to replace them with a new team, somebody will have to pay over half a million Euro to the current managers, both as severance pay and penalty for lost income. The one-off severance payment amounts to 20,000 EUR per contract, which means that 180,000 EUR will be owed to the managers on that idem only. Assuming that their terms in office will be terminated immediately after the arrival of the new ownership, additional 360,000 EUR will have to be paid to cover the lost wages for the three remaining years of their contracts. Be mindful of the fact that the contract insurance has not been included in these amounts. The Managerial Contract are common practice with the shareholding companies, but this is the first such case in Macedonia, including a contractual protection for managers in a public company, prior to the announced privatization. The contracts also include a provision that holds that, should they lose their managerial positions, the Investor will be obliged to secure other positions within the company. The experts claim that the price for the eventual replacements will be payd by the tax-payers, for the new ownership will certainly calculate the compensation costs in the total amount paid for the purchase of the control package of shares for the ESM. The other 8,000 employees at the ESM don’t have such contractual protection.

User comments

There are no comments

 Printable version