BRATISLAVA, November 12, (WEBNOVINY)- The Cabinet has tasked on Friday Economy Minister Juraj Miskov (SaS) to analyze the current state of the National Agency for Support of Small and Medium Businesses (NADSME) and draft a new structure of business supporting agencies. He has until the end of the year to fulfill the task, according to a resolution, which the Cabinet adopted in reaction to the minister’s informative report about fulfillment of the Cabinet’s previous resolutions obliging him to liquidate NADSME or substitute all government managers working at the agency.
Miskov plans to resolve the problem regarding asset siphoning allegations by merging NADSME competencies with the Slovak Agency for Investment and Trade Development (SARIO) He also wants to transfer competencies of the Slovak Innovation and Energy Agency in the field of innovation under the SARIO roof. This is why the Cabinet charged the minister with new tasks on Friday following the aim of establishing a new super-agency.
The material suggests that to set up such agency it is necessary to shape an analysis of the impacts of structural changes in the agencies in question and also an analysis of the development of the NADSME affiliation Fond Fondov since its foundation and of the state of portfolios of Fond Fondov’s individual funds of venture capital and prepare a proposal of its transfer under the jurisdiction of the proposed new agency.
According to the planned scheme of the new agency, which was on the Cabinet’s table in October the new agency should by controlled by several ministries, not only by the Ministry of Economy. The submitted scheme brings forward a proposal that the Board of Trustees of the new agency would also include the Minister of Finance, Minister of Labor, and Minister of Foreign Affairs besides the Chairman and Minister of Economy. The proposed agenda of the unified presentation of Slovakia abroad to be transferred under the new agency implies also membership of the Minister of Foreign Affairs.
Support to small and medium businesses should be realized in cooperation with Slovenska Rozvojova a Zarucna Banka [specialized bank institution supporting small and medium-size businesses] with support of small and medium enterprises. It is also the reason why the Minister of Finance is suggested to be a member of the Board, since the Ministry of Finance is a 100-percent shareholder of the bank.
However, proposals of minister Miskov have encountered tough resistance of representatives of entrepreneurs and self-employed persons who gravely do not agree with the plan to liquidate the NADSME agency. They appealed on the government to cancel the resolution on preparation of a proposal for NADSME liquidation and rather take effective steps towards canceling contracts disadvantageous for the state.
The Cabinet has tasked Miskov to liquidate the agency based on the Economy Ministry’s information that the NADSME agency has probably been allotting funds in an unlawful way. There exist suspicions that the agency allocated EUR 13.5 million to friendly companies through its affiliation Fond Fondov, s.r.o., established in 2006 to provide venture capital for innovative projects. The minister was rather hesitant about the plan to wind up the agency, pointing to several legal obstacles. He admitted in the meantime that the state would eventually not abolish the agency.
The handling of EU funds earmarked for the support of small and medium-sized enterprises has caught the attention of the European Anti-Fraud Office (OLAF). The Economy Ministry however claims that the use of finances in NADSME itself is transparent and efficient. There are about 500 projects underway and, according to the information available to the ministry, NADSME is one of the most efficient implementation agencies in Slovakia.
SITA