Accounts Chamber: Privatization of state property in 2013-2019 was carried out with violations and risks of fraud.
Such conclusions are contained in the conclusion of the Accounts Chamber based on the results of the audit of compliance with the privatization of state assets through investment and commercial tenders in 2013-2019. The auditors believe that the sale of state property was carried out in conditions of improper management and the presence of many gaps in the legislation. This jeopardized the achievement of the goal and the observance of the basic principles of denationalization of state property. In 2013-2019 revenues from the privatization of Moldova amounted to 1 billion 374.8 million lei. About 45% of them (622.6 million lei) came from the sale of state property through investment and commercial tenders. The auditors checked 26 objects privatized through tenders. They noted the absence of a strategy for denationalization of state property, brought in line with the vision for economic development, and annual privatization programs, with a clear indication of goals, conditions and specific objects for privatization. It is noted that the Public Property Agency does not apply the procedure for determining the method of privatization based on the approved criteria. At the same time, the results of the inventory of the objects to be privatized do not provide reliable and complete information about all the assets and liabilities of the objects put up for privatization. The management of the privatized enterprises, as well as the Public Property Agency, as the founder, did not provide a proper inventory of assets: in 12 cases out of 20 audited, the audit revealed various violations. For example, the recreation center “Jemciujina” (1.1 million lei, originally on the balance sheet of the State Enterprise Vibropribor), located in the Ukrainian city of Koblevo since 2011, was transferred to the management of the State Property Agency by a government decision. However, "Vibropribor" before the moment of privatization in 2017 in its documentation indicates that this recreation center is its property and that it was seized by a group of unknown persons through fraud. At the same time, Public Property Agency clarified that Vibropribor and one Ukrainian economic agent have created a joint venture, in which the former's share was 95%. Subsequently, this enterprise was taken over by third parties. The courts and investigative bodies of Ukraine have been considering this issue for 12 years. The auditors of the Accounts Chamber noted the need to develop clear terms of reference, measurable for buyers; ensuring fair competition in the course of privatization, and conducting post-privatization monitoring. Other comments relate to the capitalization of lands related to privatized objects: they were sold at prices from 3 to 26 times lower than their market value, as a result, the state did not receive more than 34 million lei in the budget, and were also leased or used free of charge by the owners of privatized state assets.// 25.06.2021 — InfoMarket.
