The Union of Municipalities of Montenegro has submitted its comments on the Draft Law on the Management of State-Owned Companies to the Ministry of Finance. In its opinion, the Union states that the proposed text is not aligned with existing legislation and that, if adopted in its current form, it could negatively affect the operation of municipal utility companies and the provision of essential services to citizens.
The Union also recalls that the Law on Local Self-Government obliges state authorities to submit draft laws affecting the work of municipalities to the Union of Municipalities for consultation, which was not done in this case. It emphasizes that cooperation between the national and local levels of government is essential to ensure that legislation is adopted in line with the real needs of citizens and local communities.
According to the Union, the draft law fails to recognize the specific role of municipalities as the founders of most municipal utility companies. These companies provide services that are essential to citizens’ daily lives—from waste collection and street maintenance to public lighting and water supply. Given that a large number of these companies are financed through municipal budgets, the Union believes that they should not be subject to the new law governing state-owned enterprises.
In its opinion, the Union proposes that the law use the term “companies established by local self-government units” instead of “companies owned by local self-government units,” in order to align the terminology with the Law on State Property. It also calls for a clear definition of the conditions under which municipalities may establish their own companies, while respecting the restrictions that apply to assets of special public importance. Particular emphasis is placed on the principle that natural resources and public assets must not be subject to sale or privatization.
The Union of Municipalities also points to unclear provisions relating to the appointment and dismissal of members of governing bodies in companies, emphasizing that the principle of the presumption of innocence must be respected. It argues that it is not acceptable for individuals to be excluded from management positions solely because criminal proceedings have been initiated against them.
Finally, the Union of Municipalities calls on the Ministry of Finance to take the submitted comments into account and align the Draft Law with existing legislation, in order to safeguard the stability of local public services and ensure their uninterrupted functioning in the interest of citizens.
