WWF-Romania participated today in the public debate on the draft Government Decision regarding the reorganization of the National Forest Administration – Romsilva.
WWF representatives drew attention to the risks of disguised politicization of the process and emphasized that the reform of Romsilva cannot succeed without revising the “Letter of Expectations” – the key document that defines public service obligations, specific objectives, and performance indicators.
Main shortcomings related to the “Letter of Expectations”
The “Letter of Expectations” is the central node of the reform of the National Forest Administration Romsilva, but it was adopted (Order no. 783/19.03.2025) without a real debate. The main shortcomings are as follows:
- Public service obligations are formulated and framed without adequate substantiation in relation to their strategic role and the provisions of the existing legislative framework. The “Letter of Expectations” assumed by the supervisory authority limits these obligations only to the management of pedigree horses and to ensuring the guarding of privately owned forests for which there is no administration and the owner cannot be identified. Thus, the management of publicly owned forests is treated as a strictly commercial activity, which risks replacing the necessary efforts for sustainable forest management with activities oriented exclusively toward profit maximization — to the detriment of environmental and social objectives.
- Performance indicators are not aligned with the objectives of the National Forest Strategy 2030 (NFS2030). Although the document invokes alignment with the objectives of the forest and environmental policy framework, it does not provide an adequate synthesis of specific non-financial expectations, in accordance with the provisions of the legislation in force.
- Annual targets are below a reasonable level of ambition. The annual targets for performance indicators appear to lack relevance in relation to the level of ambition required to support a real increase in institutional performance.
Institutional challenges of the reorganization of Romsilva
The Government Decision on the reorganization of the National Forest Administration Romsilva may generate new institutional challenges:
- Inconsistency between different sets of performance indicators
There is no correlation between the strategic performance indicators established through the “Letter of Expectations” – which has already produced effects in the selection process of the current Board of Directors – and the new set of indicators proposed to be instituted for entities subordinated to the administration through the draft normative act (Annex 3).
This lack of correlation risks creating a structural incompatibility between the two sets of indicators and a double line of accountability and reporting, contrary to good practices regarding the corporate governance of public enterprises.
- Excessive politicization of governance decisions
The introduction of the approval of the head of the supervisory authority over the organizational chart, the rules of organization and operation, as well as over the selection methodology for filling positions, increases the risks of politicizing governance decisions and affects the independence of the Board of Directors.
Through these provisions, the Board risks becoming a mere executor of political will.
Such an approach represents a deviation from the fundamental principles of corporate governance, affecting the objective of professionalization and depoliticization of the management of public enterprises. - Financial resources for implementing reforms are not guaranteed
No dedicated financial resources are provided for the implementation of reforms. Without a reasonable window for reinvesting profits, there can be no realistic expectations regarding digitalization, adequate endowment with specific production means, development of the forest infrastructure necessary to protect environmental values, increasing competitiveness, and the higher valorization of timber that would support a sustainable forest bioeconomy.
Solutions proposed by WWF-Romania
- We consider that a real reform, carried out in accordance with the provisions of Emergency Ordinance no. 109, also invoked in the substantiation note, cannot be built without a prior revision of the “Letter of Expectations” (Order no. 783/19.03.2025) – the document that outlines the mission and objectives of the public enterprise, public service obligations, and performance indicators for the selection of the Board of Directors of the National Forest Administration Romsilva (a single set of indicators).
We propose that, within the current interim mandate of the Director of the National Forest Administration Romsilva, the Authority establish public service obligations through a participatory and transparent process. We also propose the establishment of a single set of relevant and ambitious performance indicators, aligned with the provisions of NFS2030. Unity and coherence are required between: Letter of Expectations → Management Plan → Performance Indicators → Board Evaluation.
In this regard, we are resubmitting a set of proposals for performance indicators and targeted amendments to the draft normative act.
- For the establishment of “public service obligations,” according to the Forestry Code, Art. 1, para. (5) “Land within the National Forest Fund constitutes a good of national interest”; Art. 12, para. (2) “Forest districts are of public interest.” According to Law no. 374/2006, Art. 1, para. (2), by forestry-specific public service is understood: “activities that ensure the implementation and observance of the forestry regime, as defined by the Forestry Code.” Nevertheless, it has often been invoked that the identification of “public service obligations” is unclear. It would therefore be appropriate to clarify this concept for forest management by amending the Forestry Code through an Emergency Ordinance.
- Depoliticizing the public enterprise means guaranteeing the independence of the Board of Directors from any form of interference by the Supervisory Authority. The role of the state must be limited to setting strategic objectives and monitoring performance, without interventions in day-to-day management.
The Supervisory Authority must not rule on the organizational chart, the rules of organization and operation of the central structure, forest directorates, or subordinate units with legal personality, nor on the methodology for organizing the selection procedure for filling management positions for which Law no. 331/2024 provides for mandate contracts.
All these procedures must be approved exclusively by a decision of the Board of Directors of Romsilva. Only in this way can professionalization, transparency, and management efficiency be ensured. - A firm commitment by the Government is absolutely necessary, through this Decision, so that at least 90% of Romsilva’s profit can be reinvested over the next four years, in order to meet the established performance indicators.
Without minimal predictability of resources, the public enterprise cannot fulfill its established objectives. As a public enterprise, apart from public service obligations, the Administration has limited access to European funds or state budget funds that do not fall under state aid rules. Without the possibility of prudent reinvestment of the obtained profit, Romsilva risks remaining blocked precisely where the greatest potential for transformation exists and, over time, being exposed to the risk of insolvency.
Context
The reform of Romsilva began three years ago, starting from the National Recovery and Resilience Plan, namely from the country-specific recommendations of the European Commission and the Organisation for Economic Co-operation and Development (OECD) regarding the proper functioning of public enterprises. The process was initiated by invoking the need to increase the performance of public enterprises and their financial results.
Subsequently, the provisions of the collective labor agreement regarding retirement bonuses were brought into the spotlight. Since then, discussions have been practically blocked around the number of forest directorates and the procedures for appointing directors. Unfortunately, the central elements of the reform deriving from the adopted Corporate Governance Ordinance were overlooked far too quickly.
In this context, we recall what the starting point was:
- Society’s expectations, which pursue the public interest related to non-commercial, environmental, or social objectives, should prevail in the management of forests owned by the state. The management of public forests and the valorization of timber must be carried out in the interest of citizens, intrinsically linked to public service obligations, forests being goods of national interest. They must not be replaced by commercial services aimed at maximizing profit rates for a particular company. All these desiderata are not adequately reflected by the performance indicators established for the National Forest Administration Romsilva.
- At national level, the main challenges related to the performance of public enterprises are:
• selection processes and the practice of appointments or maintaining provisional mandates of board members, which have allowed political interference and reduced the level of professionalism;
• lack of monitoring and mechanisms to ensure compliance with legislation and specific responsibilities. - With the adoption of the Corporate Governance Ordinance, the only instruments available to the Ministry of Environment, Waters and Forests to ensure the strategic supervision of Romsilva and to remedy the highlighted shortcomings are:
• the formulation of the Letter of Expectations – the key document of the reform of the National Forest Administration Romsilva, which establishes public service obligations, specific objectives, and defines performance indicators;
• ensuring a competitive and transparent process regarding the selection procedures of the Board of Directors;
• objective monitoring of the degree of fulfillment of performance indicators and approval of the revenue and expenditure budget (REB), but without establishing the details of budget execution.
WWF-Romania reaffirms its willingness to collaborate with the authorities for a transparent and sustainable reform of Romsilva. A depoliticized and professional administration is essential for the protection of Romania’s forests.
Chronology of articles published by WWF-Romania on the reform of Romsilva
- Reform of the National Forest Administration Romsilva: between assumed commitments and the conditions for real impact (July 2025)
- Romsilva reform, for the first time in public debate (May 2025)
- Romsilva reform: a new step, on thin ice, toward the unknown (April 2025)
- WWF-Romania warns: Authorities’ expectations of ROMSILVA do not converge with the objectives of the National Forest Strategy (February 2025)
- The situation at Romsilva is a programmed failure or, at least, easy to anticipate (January 2025)
- Romsilva reform, designed behind closed doors, must be revised (October 2024)
- The derailment of the long-awaited reform of Romsilva (April 2023)