A group of experts presented its vision for the reorganization of the Public Property Agency (PPA) in the form of an interactive infographic that outlines potential directions for the reorganization.
According to the infographic’s authors, their work should be useful for developing a potential Institutional Development Program for 2026–2030. “This will provide decision-makers, experts, and the general public with an overview of the scope of the reform and the stages of its implementation,” according to Expert-Grup.
The Agency Is an Ineffective Owner
The analysis is based on a structural shortcoming of previous APS reforms: an expanded mandate carried out against a backdrop of chronically insufficient competence.
“The agency performs the state’s function as owner of a large number of state-owned companies and assets worth tens of billions of lei, but it does so within a structure typical of a ministry, where only about 67% of positions are filled, risk management is poorly organized, and the digital tools necessary for such a complex mandate are lacking,” the study states.
Added to this are the politicization of the institution and the lack of an organizational development strategy.
The authors present the results of the assessment in the form of eight structural constraints, grouped into four functional areas of the Agency’s activities. Based on 25 findings documented during the functional analysis, each constraint—from strategic planning and organizational design to management, record-keeping, corporate governance, and capitalization—can be explored interactively along with the corresponding policy implications.
Overall, the conclusion is clear: the existing structure no longer aligns with the agency’s mandate.
What is being proposed?
As a solution, the infographic proposes a phased reorganization to be implemented over three time horizons.
In the short term, immediate measures are needed—internal reorganization by function, the implementation of an information system, and the transformation of state-owned enterprises into joint-stock companies.
First, optimizing functions. Dividing the Agency’s responsibilities into corporate governance, accounting and monitoring, as well as the effective use of assets (without micromanagement).
Second, digitization and independence. Implementation of the SI RPPAPS information system, depoliticization of leadership, and adoption of best practices in corporate governance.
In the medium term, corporate governance will change—the holding company model will be enshrined in the Strategy on State Ownership and in Law No. 121/2007, and the regulatory framework necessary for the creation of a state-owned holding company.
Third, in the long term, by 2029, a state-owned holding company will be established to assume corporate governance of companies with state capital. The immediate priority remains strengthening state governance, focused on preserving public heritage and state-owned land, on digitalization, and on rigorous record-keeping.
Thus, the reform addresses all three functions of the mandate: corporate governance, record-keeping and asset monitoring, as well as the direct management of state property.
The infographic also includes proposals for the agency’s strategic positioning, including a revision of its mission to focus on the economic impact and public benefits of the reformed agency.
It should be noted that these formulations represent recommendations from the expert group, which will be incorporated into the regulatory framework and the Institutional Development Program if a decision is made to implement this reform.
The document concludes with five public policy decisions open for discussion. They cover a three-stage reorganization model, the depoliticization of management, the categorization of enterprises and the separation of real estate, adjustments to the APS funding method, adjustments to the regulatory framework, and the creation of a holding company.
Why is the reorganization of the APS necessary now?
Expert-Grup’s proposed plan aligns with Prime Minister Alexandru Munteanu’s statement on reorganizing the APS from scratch, which followed a high-profile scandal involving salaries and oversight at the state-owned enterprise “MoldATSA.”
Moldova’s public sector poses significant fiscal and corruption risks. The reform aims to clearly delineate roles: the state should remain a strict regulator rather than engage in commercial activities.
Moldova has a high concentration of state-owned assets: 93.7% of the assets of all state-owned companies are concentrated in just the 20 largest enterprises. More than half of the assets are controlled by the State Road Administration and Energocom, which makes the economy vulnerable to the financial performance of these giants.
The lack of competition in supposedly liberalized sectors leads to reduced efficiency. The high share of state-owned enterprises hampers overall economic productivity and value creation. According to the report, “the economic significance of state-owned enterprises remains high, but their relative share is declining.”
In 2024, they accounted for approximately 79.5 billion lei in assets, 38.9 billion lei in equity, 54.1 billion lei in revenue, and approximately 29,300 employees. Compared to the national economy, they accounted for 11.6% of assets, 13.2% of equity, and 8.1% of revenue, confirming the faster growth of the private sector.
According to Sergei Merzhan, program director at Expert-Grup, “the size of state assets is not accompanied by commensurate financial results, especially in the case of state-owned enterprises, where capitalization depends to a large extent on budgetary interventions.”
Success in managing state assets should be assessed based on concrete results: a reduction in the number of unviable enterprises, a decrease in tax risks, and an increase in the “economic value” of state-owned companies.
