Transparency of Commercial Companies in Government Ownership (HR0047)

Which public issue does the measure address? A review of the current state of affairs at local levels of government has detected the existence of real risks which may lead to corruption in work and asset management, that is, in commercial companies in the ownership of units of local and regional self-government. In this context, it should be noted that the Anti-Corruption Programme for commercial companies in the ownership of units of local and regional self-government from 2021 to 2022, accepted by the Government of the Republic of Croatia in December 2020 is currently being implemented, the aim of which is to strengthen anti-corruption standards, that is, strengthen the transparency and accountability and control risks in asset management operations of units of local and regional self-government. Among other things, in the reports on financing programmes and projects by NGOs from public sources, which are prepared by the Government Office for Cooperation with NGOs, there is information on financing NGOs from the revenues of public commercial companies. In this regard, the Government Office for Cooperation with NGOs has established the need to conduct training that would cover public commercial companies and ensure that the distribution of funds to NGOs is carried out in accordance with positive regulations.

What does the measure include? The measure enables the further strengthening of transparency in the field of asset management of units of local and regional self-government. In this context, it should be noted that, as part of the implementation of the Anti-Corruption Strategy for 2015-2020, a complete list of commercial companies in majority ownership of units of local and regional self-government was drawn up for the first time and the data on the names of board members and supervisory boards were collected for the first time. The production of the above mentioned list is important in the context of the implementation of the Anti-Corruption Programme for commercial companies in majority ownership of units of local and regional self-government for 2021- 2022, which is currently in action. As part of the further strengthening of transparency in this context, a training programme for commercial companies in the ownership of the Republic of Croatia or one or more units of local and regional self-government on the criteria and standards for awarding donations and sponsorships to NGOs is also planned.

How does the measure contribute to resolving the public issue? The adoption and implementation of the Anti-Corruption Programme for commercial companies in the ownership of units of local and regional self-government attempts to set up efficient mechanisms for suppressing corruption in companies in the ownership of local authorities, with the aim of promoting a comprehensive policy of prevention, efficient reporting mechanisms and high standards of company accountability, thus contributing to overall business efficiency. The competent bodies of companies are instructed to work intensively on developing appropriate management practices, abiding by the main elements of the fight against corruption, and to be proactive in achieving the priority goals of anti-corruption policies, particularly in relation to achieving the goals of strengthening integrity, accountability and transparency in their work. It is expected that the implementation of training programmes for commercial companies in the ownership of the Republic of Croatia or one or more units of local and regional self-government on the criteria and standards for awarding donations and sponsorships to NGOs will improve the transparency of these processes, and raise their quality in general, aligning them with positive regulations in this area.

Why is this measure relevant to the values of the Open Government Partnership? The implementation of the measure contributes to strengthening transparency and access to information held by public authorities at the local level and to improving the quality of published information. At the same time, implementation enables company accountability to be strengthened, with the more efficient management of public resources and the increased integrity of public services, that is, public and civil servants.

Activities: Implementation start date: Implementation end date: 7.1. Implementing the training programme for commercial companies in the ownership of the Republic of Croatia or one or more units of local and regional self- government on the standards for January 2022 December 2023 45 awarding donations and sponsorships to NGOs

Number and title of activities: 7.1. Implementing the training programme for commercial companies in the ownership of the Republic of Croatia or one or more units of local and regional self-government on the standards for awarding donations and sponsorships to NGOs Implementation indicators: - A minimum of two training workshops held annually The baseline value of result indicators: Four workshops held by 2021 Source of data and frequency of data collection: Representatives of commercial companies in the ownership of the Republic of Croatia or one or more units of local and regional self-government trained 46 Financial resources required (Source of funding and planned resources): Resources are assured from the State Budget, section 02010, Government Office for Cooperation with NGOs of the Croatian Government, activity A509042, Implementation of the National Anti-Corruption Programme, in the amount of HRK 16,500.00 annually. Implementation start date and implementation deadline: January 2022 – December 2023

Action Plan Review

Commitment 7. Transparency and Accountability of Commercial Companies in Majority Ownership by Local and Regional Self-Government

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest