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Prime minister blasts industry ministry

Prime Minister Mikhail Myasnikovich expressed deep dissatisfaction during a Council of Ministers meeting on Wednesday with the performance of the industry ministry in the first six months of 2013.

Mr. Myasnikovich slammed the ministry over falling exports and output, growing stockpiles of unsold goods, rising payables and receivables and smaller-than-expected foreign direct investment (FDI), according to the Council of Ministers press office.

The government can no longer tolerate such helplessness on the part of the industry ministry, he said, indicating that some of its officials would lose their jobs.

Mr. Myasnikovich criticized state conglomerates, including the Belarusian State Petrochemical Industry Concern (Belnaftakhim).

The performance of oil producer VA Belarusnafta, potash giant AAT Belaruskali and chemical company AAT Hrodna Azot improved somewhat in the first six months because their directors are completely passive, but Belnaftakhim has failed to meet its targets for the development of the chemical industry, the petrochemical industry and the production of fine chemicals as well as varnish and paint, Mr. Myasnikovich said.

Belnaftakhim was expected to be reformed during the 2011-15 period to manufacture products having a high added value and processing depth instead of selling semi-finished products, he said.

Speaking about the Belarusian State Light Industry Concern (Bellehpram), Mr. Myasnikovich said that apart from failing its output and FDI targets, its management has not established conglomerates of leather and footwear companies and knitwear producers because of the poor discipline and professional skills of its managers.

Mr. Myasnikovich warned that the “mechanical merger” of companies to form conglomerates without deep economic integration and the modernization of the management systems would be inefficient.

It is also necessary to introduce modern accounting and cost and inventory management systems as well as improve the performance of the sales departments, he said.

Mr. Myasnikovich ordered the economy ministry to carry out a probe in the fourth quarter of 2013 to assess the management practices of major state conglomerates and companies. He also ordered the State Property Committee to help them find investors and ensure the inclusion of “independent members, high-level professionals” in their supervisory boards. //BelaPAN