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Deficiencies in the Government’s governance of public enterprises

The Government should draw up criteria for when a public enterprise is an appropriate corporate form. In addition, the Government should review the regulatory framework for public enterprises so that it is relevant and up to date, states the Swedish National Audit Office.

Kontrollrum, datorer på Luftfartsverket.

audit background

The Swedish NAO’s conclusion is that the Government has not sufficiently developed and adapted the governance of public enterprises to their current form of operations and future challenges. The stance of policy on the governance of the public enterprise corporate form needs to be updated to ensure that it is up to date and efficient.

Central government activities are normally conducted by administrative agencies. In addition, there are state-owned companies, foundations and some public enterprises. The public enterprise corporate form came into being as part of the 1911 budget reform. The public enterprises had important functions in the 1900s, not least as regards extending and maintaining infrastructure. The intention to the establishment of the public enterprise corporate form was to enable the public enterprises to conduct their business independently of the central government budget.

In the same way as administrative agencies, public enterprises are part of the legal person of the State and are governed through a number of exemptions from and additions to the regulatory code applicable to administrative agencies in general.

The purpose of this report is to audit the Government’s governance of the three remaining public enterprises. This means auditing whether the governance is designed in relation to the special characteristics of the public enterprises.

Press contact: Olle Castelius, phone: +46 8-5171 40 04.

Presskontakt: , telefon: 08-5171 42 06.


Updated: 15 October 2018

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