Review problems to amend regulation on assessment of SOE managers

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The terminology on the ranking of SOE managers will be revised. Photo: Internet.

The Ha Tinh province’s representative sent a proposal on the issuance of a circular to revise and add the content "Assessment of SOE managers" in Circular No. 200/2015 / TT-BTC of the Ministry of Finance guiding a number of contents on supervision of State capital investment in firms and financial supervision, performance assessment and disclosure of financial information of State-owned and State-invested enterprises in accordance with the regulation “Assessment of SOE managers”in Decree No. 97/2015 / ND-CP on the management of persons who holds the title and the position in the business as limited liability company members that the State holds 100% of the charter capital.

Responding to this proposal, the Ministry of Finance said, Decree No. 97/2015 / ND-CP, the criteria to assess managers are based on ratios (100%, 70% or more and less than 70%) of fulfillment of assigned tasks according to the annual work plan and individual evaluation criteria such as their observance of policies, guidelines and laws of the State; and their political and ethical qualities; and their ability in leadership, management and performance of tasks; and participation in social activities.

Circular No. 200/2015 / TT-BTC detailing guidance on the implementation of the Government's Decree No. 87/2015 / ND-CP dated October 6, 2015 on the supervision of State capital investment in enterprises; financial supervision, performance evaluation and disclosure of financial information of State-owned and State-invested enterprises. Therefore, criteria "assessment of SOE managers" in Circular No. 200/2015 / TT-BTC are based on the provisions of Decree No. 87/2015 / ND-CP.

Clause 4, Article 28 of Decree No. 87/2015 / ND-CP stipulates: “The assessment of performance results of the enterprise’s managers shall be governed under the Government’s regulations and according to the following criteria: The level of conformity with objectives assigned by the representative agency in terms of net income and net income-to-equity ratio; enterprise rating results; and the level of complete implementation of the plan to supply public products or services (applicable to enterprises providing public products and services).”

According to the Ministry of Finance, due to the different scope of governance the criteria “assessment of SOE managers” in Decree No. 87/2015 / ND-CP and Circular No. 200/2015 / TT-BTC will be different from those in Decree No. 97/2015 / ND-CP.

In addition to the assessment according to the provisions of Decree No. 97/2015 / ND-CP, criteria for "assessment of SOE managers" in Decree No. 87/2015 / ND-CP and Circular No. 200 / 2015 / TT-BTC are based on financial criteria.

However, the Ministry of Finance confirmed the evaluation criteria in Decree No. 87/2015 / ND-CP, Circular No. 200/2015 / TT-BTC and Decree No. 97/2015 / ND-CP above do not conflict.

Based on the assessment objectives of the representative agency, the assessment of SOE managers will comply with criteria specified in Decree No. 87/2015 / ND-CP, Circular No. 200 / 2015 / TT-BTC and Decree No. 97/2015 / ND-CP.

Regarding the rating of SOE managers, the Ministry of Finance said Article 14 of Decree No. 97/2015 / ND-CP stipulates that “enterprise managers are assessed annually and classified according to three levels: excellent completion of mission, completion of mission completion and failure of mission.”

Circular No. 200/2015 / TT-BTC guiding the implementation of Decree No. 87/2015 / ND-CP stipulates the ranking of enterprise managers according to three levels: good completion of mission, completion of mission and failure of mission.

Thus, the ranking of enterprise managers in Circular No. 200/2015/TT-BTC is classified into three levels similar to Decree No. 97/2015 / ND-CP. There is only a wording difference “excellent completion of mission” in Decree No. 97 and “good completion of mission” in Circular 200.

The Ministry of Finance said though there is a difference in words the nature of the ranking is the same asthey are used to state the highest ranking.

The Ministry of Finance also said on July 29, 2020, the Ministry of Finance issued Official Letter No. 9114 / BTC-TCDN to ministries, ministerial-level agencies, People's Committees of provinces and centrally-run cities, economic groups, State-owned and State-invested enterprises to review problems and difficulties in the compliance with the provisions of Circular No. 200/2015 / TT-BTC of the Ministry of Finance.

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Based on the proposals on problems and difficulties from agencies, the Ministry of Finance is reviewing to adjust and add Circular No. 200/2015 / TT-BTC. The Ministry of Finance will make amendments to the terminology related to the ranking of SOE managers to ensure consistency of legal documents.