Goskontrol: from a frequent change of power, the management of city societies Narva suffers

The management of city institutions Narva suffers due to a frequent change in power-the Soviets of these enterprises are almost annually updated, according to the state control report published today. The state control also established that after the corruption case of AS Narva Vesi in 2019, the city of Narva did not undergo a corrupt case to a critical revision and did not change the accents, writes BNS.

A frequent change in power creates instability in the societies belonging to Narva. Since the Soviets consist mainly of members of the city assembly and with almost every change of power there is a redistribution of seats, new members of the council take time to get comfortable and go on the course of business – until they are replaced again. Thus, members of the Council do not have time to get an idea of ​​the situation of society, its problems and development needs.

“In the case of commercial partnerships belonging to the city, the main attention seems to be paid to the composition of the council, and not the results of the activities, the clear expectations of the owners or the goals of the work of commercial partnerships,” said the state controller Janar Holm. -Although in 2011, the law introduced a demand for local authorities to establish conditions and procedures to participate in societies, in Narva, not a single such procedure was established in 14 years. However, it is impossible to say that decisions are not made – an example is recalled when the coalition, which lasted only a week or so, before breaking up, managed to change the composition of the council of six out of seven commercial partnerships. ”

After the local elections of 2021, the sixth coalition has already been in power in Narva. The composition of the councils of most societies during this time changed four to five times. For example, in the SA Narva Linnaelamu council there were five political scraps. It is noteworthy that 29 out of 31 members of the City Assembly, that is, almost everything, has managed to visit the Council of Council, that is almost everything, from the City School, formed after the elections of 2021. During this time, some members of the City Board managed to visit the councils of up to four societies.

Goskontrol noted that members of the Councils of Societies hardly understand their role and tend to do the work of the board. Although, according to the law, the Council must control the board and ensure strategic leadership of the company, the councils of societies in their decisions often reached the level of conducting the daily economic activities of the company. For example, they made decisions on salary, premiums of ordinary workers, small purchases, etc. This indicates that the liability of the Council and the Board for making management decisions is shifted.

Despite the corruption case of AS Narva Vesi in 2019, the city of Narva did not criticize the system of monitoring of societies and did not change the emphasis in it. At that time, corruption was associated with procurement, but during the reign of the current City Board the city did not in this connection pay more attention to reducing the risks of corruption in the commercial partnerships belonging to it. In the context of preventing corruption, there is also a risk that the transactions of societies with related parties are left without proper attention, since the corresponding accounting in societies is often not effective enough. Related persons are, for example, members of the Council and Executive leadership, as well as members of their families. Also, funds, non -profit societies and commercial partnerships, on which members of the Council and the executive leadership have a predominant or significant influence.

The state control established that the Audit Commission of the Narva City Assembly paid little attention to the city of societies. Of the seven societies during the reign of the current city assembly, only two were checked: SA Narva Linnaelamu, Sa Narva Linna Arendus. In the light of the previous case of corruption in AS Narva Vesi, such little attention is not justified to societies.

The state control sees the risk that members of the audit commission are included in the Councils of Societies. This is not prohibited, but leads to a conflict of roles and can affect the objectivity of the selection of the revision commission of objects of control, since in this case a person can be both a controller and controlled. For example, as of April 2025, the chairman of the Narv Revision Commission was simultaneously a member of the councils of two city societies, in one of which he was the chairman of the council.

The state control also came to the conclusion that the purposeful activity of the Narva societies at different levels in development documents is uneven and unfounded. Based on this, it is impossible to assess the success of the company’s activity or whether participation in societies is generally necessary in the light of the tasks of the local government.

The state control recommends Narwe to establish the rules of participation in societies, as provided for in the Law on the organization of local self -government. At present, they are not in Narva, despite the fact that the law on the organization of local self -government requires their presence since 2011. The rules should also prescribe the requirements for control over societies and to organize the work of the governing bodies of the company, so that in the future the Council can more focus on its role provided by law. In order to streamline the strategic management of societies, the state control recommended that Narve establish clear, measurable and comparable goals for the activities of societies.

The city government of Narva agreed with the recommendations and noted that the participation of the city in societies needs clear regulation, and the activities of societies under the control of the city should be sent properly.

The city of Narva has a predominant influence in seven societies: Sa Narva Haigla, Sa Narva Linna Arendus, Sa Narva Linnalamu, Sa Narva Sadam, As Narva Vesi, As TransServis-N Jaää tykäitluuskeskuskus. All societies have a council consisting of 3-7 members, consisting mainly of members of the City Council representing the ruling coalition. The exception is the SA Narva Haigla Ja Sa Narva Sadam hospital, in the advice of which there are also two members who are not politicians.

Of the Narva societies, the largest is SA Narva Haigla, the income from which in 2024 amounted to 37.4 million euros. It is followed by AS NARVA VESI (6.5 million euros), SA Narva Linnaelamu (1.7 million euros), SA Narva Linna Arendus (1.4 million euros), Oü Narva Jäätmekäitluskeskus (0.9 million euros), AS TRANSERVIS-N (0.15 million euros) and SA Narva Sadam (0.05 million euros).

The state control analyzed the fulfillment of obligations and the exercise of the rights arising from legal acts at the level of the leading bodies of the company, which is the prevailing influence of the Narva City Assembly, the Narva City Council and the city of Narva, to ensure the movement of information on the chain of management, the information of the decision -making of persons and the competence of decision -making in the field of economic activity of the company. The work of the revision commission of the city assembly and auditors of the city council in relation to societies under the prevailing influence of the city was also analyzed. Most of the audit issues concerned the reign of the Narva City Assembly, elected in 2021, i.e. From November 19, 2021 until the audit. The audit was completed in March 2025.

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