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It is still unknown how many similar state-owned companies, but according to representatives of the Ministry of Agriculture, it is likely that the payment of such salaries is legal, although the salaries of the employees are six times higher than the salary of the director of the company.
This was not the only great salary at this company.
Managed projects
“Some employees of the Agricultural Information Center and Rural Business (ŽŪIKVC) were paid salaries that did not correspond at all to market conditions. For example, the average monthly salary of an employee in the first half of this year amounted to 18 thousand. EUR (all salaries, on paper, before taxes).
Slightly more than half of this salary consisted of accrued wages with bonuses for additional work. The other part is about half of the three projects implemented, which are paid for separately.
The average monthly salary of another employee in the first half of the year amounted to 12 thousand. Euros. One third of them were salaries with bonuses for additional work and two thirds were payments for executed projects ”, says Saulius Jarmalis, advisor to the Ministry of Agriculture, on the situation of the company.
He assures that it was the additional projects implemented that allowed to increase the average salary of at least ten employees by about a third and in total their average salary reached 5,000 in the first half of this year. and more euros.
Salaries in institutions dependent on the Ministry of Agriculture
© Organization archive
By comparison, the average annual salary of CEO Saulius Puodžiukas for the whole of 2020 amounted to just over 3,000. euros. He could not increase his own salary because it was regulated by a different legislation than that of public servants.
There were similar trends in ŽŪIKVC in 2020: the average monthly salary of some employees amounted to 13 thousand. EUR, 7 thousand. EUR, 5 thousand. and a quarter, a third or even half of this salary was made up of income from executed projects.
According to the rekvizitai.lt portal, the average salary in a company is 2,188.41 euros.
According to the representative of the Ministry of Agriculture, it is not only IT specialists who receive increased salaries and significantly higher than those of the market in the company. Part of the salary increase is also paid to individual administrative staff.
Admittedly, if you expect to be suddenly overwhelmed by gold after winning a competition and landing a job at this unprofitable public institution, that is unlikely. The company’s board of directors indicated that about ten people have declared ties and possible conflicts of interest with relatives who work in the same company or in the Ministry of Agriculture, and approximately the same number have not declared a conflict of interest (because it is optional).
HACCP worked according to a simple scheme. They received grants from the budget for the functions entrusted to them. This allowed them to operate at a loss, but was able to make a profit from business activities under current legislation. Formally, this has allowed the payment of huge salaries, although the business activity has not been profitable for the last four years.
I had to withdraw
It is true that gold mining is likely to end in a company at a loss. At least for a while.
Sigitas Puodžiukas, CEO of the company, resigned after being asked by Agriculture Minister Kęstutis Navickas to explain the situation.
ŽŪIKVC is a state-owned company established to ensure the efficient operation of registries and information systems in the regulatory area of the Ministry of Agriculture, and participates in the development of the administration system to support agriculture and rural development. The company provides operational and summary information to state and municipal institutions, social partners in the fields of agriculture, food, rural development and fisheries.
“When the company pays some employees up to 18 thousand. The average monthly salary is 1 million euros and the manifestations of nepotism are flourishing. The company is sinking into ever-increasing losses and does not have a plan on how to remedy the situation, so its manager must step down.
We hope that the new manager, whose selection will be announced soon, has a vision of how to ensure transparency and sustainable financial results in a company that performs crucial functions, ”says Agriculture Minister K. Navickas.
The company’s new board of directors, approved by the majority of independent members, approved in June, had serious doubts about the validity and compliance with the decisions made by the company’s management.
End of quote.
The truth about what will happen to people with high wages is unclear. No one will deduct the amounts already paid, but it is planned that there will be no more bonuses for projects that, in the case of the highest salary, amount to half the salary.
Explanation from ŽŪIKVC on wages paid:
The Company’s explanations of salary mention that additional work may be temporarily assigned to HACCP employees with the consent of the employees, by awarding a bonus to additional work or by entering into agreements on the performance of additional work in the following cases :
the employee performs an unforeseen additional work, the employee, at a certain time, increases the normal workload in the performance of his direct functions.
Employees also participate in projects to develop, expand and improve internal HACCP information systems, for example, HACCP has developed its own task and incident management tool, the Employee Data Management Information System.
ŽŪIKVC also participates as partners in external projects:
For example, projects:
* “Development of the agro-industrial analysis system” (project code No. 10.1.1-ESFA-V-912-01-0031),
* Service contract for the development of the accounting subsystem for the use of fertilizers for the application information system (project No. 05.3.1-APVA-V-011-01-0010)
* “Development of the fertilization planning and fertilizer accounting subsystem of the application acceptance information system and a unified methodology for the preparation of fertilization plans” under measure No. co-financed with funds from the European Union. 05.3.1-APVA-V-011 “Management and protection of water resources”)
When evaluating the salary information provided by the company, it can be seen that employees simultaneously perform their direct functions, as well as perform additional work related to direct functions, implement RDP-funded projects, and still participate in company business projects. It is observed that not only IT specialists, but also employees of administrative departments of the company receive salaries not only from the budget, but also from company funds (during project implementation).
The company’s publicly announced results (not including budget-funded activities): consistently negative over several years https://governance.lt/vvi/zemes-ukio-informacijos-ir-kaimo-verslo-centras/, because the Operating costs itself does not cover sales revenue in any way.
Due to these results, the ratio between the share capital of ŽŪIKVC and the capital of the owner reaches 55%. and approaching 50 percent. The owner’s capital payable (reimbursable) to the State decreases in case of liquidation of the company (not everything is invested, but the equity would be paid (even taking into account the debts). In our case, only half of the invested. In others, that is, the investment depreciates.
A thorough audit of the company will be conducted to determine if there are signs of neglect or abuse. If such facts come to light, the owner will take the necessary steps to recover the damage.
Regarding control, the company has not had a board of directors since 2018. In order to strengthen control of the company, only in June of this year a new board was appointed and a realistic assessment of the situation was carried out.
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