Justice Ministry wants to make bankruptcy appointments more transparent by scrapping public exams

The people entrusted with handling Slovakia’s biggest corporate bankruptcies may no longer have to demonstrate their expertise in public.

The Justice Ministry wants to replace public oral examinations for specialist bankruptcy administrators with written tests and case studies. It says the change would make the selection process more objective. Critics argue that it would make it harder to judge whether candidates are qualified for the job, Denník N reported.

These administrators oversee bankruptcies and restructurings involving companies with annual turnover and assets exceeding €10 million. Their decisions can affect creditors, employees and the future of struggling businesses.

Banks lose their say

The proposal follows another change introduced late last year, when the ministry increased its representation on the three-member selection commission from one seat to two. Banks, often the largest creditors in bankruptcy proceedings, lost their majority.

The Slovak branch of the Turnaround Management Association (TMA), an international organisation bringing together restructuring specialists, lawyers and banks, has criticised both changes.

Its chairman, Viliam Myšička, says abolishing public interviews would prevent outsiders from seeing how candidates defend their decisions and answer questions about complex insolvency cases.

Only five administrators have qualified under the existing system, introduced by previous OĽANO-led governments.

Ministry defends its plans

The Justice Ministry, headed by Boris Susko of the governing Smer party, argues that standardised written tests and predetermined marking criteria would reduce subjective assessments.

It also maintains that the state should have the stronger voice in appointments because the ministry is responsible for supervising bankruptcy administrators. Banks, it says, represent commercial interests rather than the wider public interest.

TMA disputes the ministry’s reasoning and questions whether the proposed changes to the decree on the rules governing the education and training of insolvency and restructuring administrators comply with existing legislation requiring public examinations and audio recordings.

Some opposition MPs are considering challenging the regulation at the Constitutional Court if it is adopted, accordin to Denník N.