MINSK, 15 October (BelTA) – The situation at some industrial enterprises is a cause for concern and the government will have to apply a hands-on management approach to some of them, Belarusian Prime Minister Aleksandr Turchin told journalists following his report to Belarusian President Aleksandr Lukashenko on 15 October, BelTA has learned.
Journalists asked about the situation in the manufacturing sector that Aleksandr Turchin supervises on the president’s instruction. “The manufacturing sector plays a huge role in the economy of our country. We are expected to ensure the efficient operation of the manufacturing sector as of any other sector of the economy. The president’s concern about the state of the sector is understandable. The government is also concerned about the situation in our mechanical engineering industry. This is due to a number of both objective and subjective reasons,” the prime minister explained.
He emphasized that at this stage it is very important to develop clear mechanisms and an understanding of how these enterprises should operate to ensure efficient work, generate profit, pay people decent wages, and meet the financial commitments. “Therefore, I would not call myself a big fan of this management method, but we will essentially put some enterprises under hand-on management . At least for some period of time. In order to monitor the processes that are taking place there,” Aleksandr Turchin said.
Among the reasons was to stop management from pursuing so-called “simple” solutions. “What is an ‘easy’ solution? To manufacture products, send them to a warehouse, or ship them to dealers abroad without receiving payment. This solution is brilliant in its simplicity, but it is fraught with very serious consequences: a lack of working capital and a rapid financial decline,” the prime minister noted.
“Efficient operation and balanced growth are the determining factors for the development of enterprises. Therefore, the sector is on our radar,” he emphasized.
Journalists asked about the situation in the manufacturing sector that Aleksandr Turchin supervises on the president’s instruction. “The manufacturing sector plays a huge role in the economy of our country. We are expected to ensure the efficient operation of the manufacturing sector as of any other sector of the economy. The president’s concern about the state of the sector is understandable. The government is also concerned about the situation in our mechanical engineering industry. This is due to a number of both objective and subjective reasons,” the prime minister explained.
He emphasized that at this stage it is very important to develop clear mechanisms and an understanding of how these enterprises should operate to ensure efficient work, generate profit, pay people decent wages, and meet the financial commitments. “Therefore, I would not call myself a big fan of this management method, but we will essentially put some enterprises under hand-on management . At least for some period of time. In order to monitor the processes that are taking place there,” Aleksandr Turchin said.
Among the reasons was to stop management from pursuing so-called “simple” solutions. “What is an ‘easy’ solution? To manufacture products, send them to a warehouse, or ship them to dealers abroad without receiving payment. This solution is brilliant in its simplicity, but it is fraught with very serious consequences: a lack of working capital and a rapid financial decline,” the prime minister noted.
“Efficient operation and balanced growth are the determining factors for the development of enterprises. Therefore, the sector is on our radar,” he emphasized.
Aleksandr Turchin pointed out that this year, solutions have already been found that have allowed a number of enterprises to improve their operational efficiency.
Following a recent decision by the president, leadership changes were made at several major industrial enterprises, and the new heads have already been introduced to the staff. The government expects from them, first and foremost, a comprehensive analysis of the current situation, as well as proposals or the development of measures to improve it. “I do not want to say that the situation is bad at each of them. It is worse at some, better at others. But their task [the task of the new heads] is analysis and the development of measures and proposals to improve the situation,” the prime minister said. “Many of our people work at these enterprises, so we must ensure their efficient operation.”
The prime minister noted that the enterprises have undergone modernization, and substantial funds were invested in it. “Unfortunately, this did not always yield the desired effect. Therefore, the task [now facing them] is to ensure the enterprises operate, generate profit, pay wages, and meet their financial commitments,” he said.
According to Aleksandr Turchin, the government will soon propose personnel decisions for other structures to the head of state. “Because the current time demands making decisions, being responsible, and understanding that employees are relying on you as a leader. And you must work so that your teams have confidence in the future,” he noted. The prime minister stressed that personnel decisions are always based on objective evaluation of work: “We judge by outcomes: if there are work results, there are no issues. Without results, we cannot afford to overlook it for long.”
As was reported, Belarusian President Aleksandr Lukashenko approved the appointment of the directors general of OAO Belshina, OAO Mogilevkhimvolokno, and OAO Gomselmash on 13 October. “They must rescue these enterprises, and we must stop talking about them,” the head of state outlined the key tasks. He directed that existing problems must be solved by relying on the enterprises’ own strengths and resources. “Do not hope that you will come and take money from the budget. You will receive money only for specific product supplies. If you have products to sell for export and you will for sure receive money for them, we will lend you some. You sell them and return it. Here we are not talking about years, centuries, or decades. You take it - you return it tomorrow. Only this way,” Aleksandr Lukashenko said.
The prime minister noted that the enterprises have undergone modernization, and substantial funds were invested in it. “Unfortunately, this did not always yield the desired effect. Therefore, the task [now facing them] is to ensure the enterprises operate, generate profit, pay wages, and meet their financial commitments,” he said.
According to Aleksandr Turchin, the government will soon propose personnel decisions for other structures to the head of state. “Because the current time demands making decisions, being responsible, and understanding that employees are relying on you as a leader. And you must work so that your teams have confidence in the future,” he noted. The prime minister stressed that personnel decisions are always based on objective evaluation of work: “We judge by outcomes: if there are work results, there are no issues. Without results, we cannot afford to overlook it for long.”
As was reported, Belarusian President Aleksandr Lukashenko approved the appointment of the directors general of OAO Belshina, OAO Mogilevkhimvolokno, and OAO Gomselmash on 13 October. “They must rescue these enterprises, and we must stop talking about them,” the head of state outlined the key tasks. He directed that existing problems must be solved by relying on the enterprises’ own strengths and resources. “Do not hope that you will come and take money from the budget. You will receive money only for specific product supplies. If you have products to sell for export and you will for sure receive money for them, we will lend you some. You sell them and return it. Here we are not talking about years, centuries, or decades. You take it - you return it tomorrow. Only this way,” Aleksandr Lukashenko said.
Follow us on:
