Moldovan top court finds out infringements in Chisinau public property management

Chisinau, 27 July /MOLDPRES/ – The Court of Accounts at a meeting has considered an audit report on compliance of management of public assets in Chisinau municipality for 2014-2015, in which it found out more irregularities admitted by the local administration.

Local public administration authorities (AAPL) failed to systemically approach the management of local public property, while recording and reporting of heritage and property payments are dispersed, the Report reads. As a result, revenues worth 307 million lei  had been missed, according to the audit record.

Local public administration authorities "have not fully assumed the duties of owner of local public property". The difference between data of various sources on the number of municipal enterprises and their authorized capital is between 68 million lei up to 434 million lei.

Thus, the lists of (un)liable assets to privatization and the ones liable for rent, lease, concession, etc. have not been approved, which limited the transparency and predictability of the process of public assets' management. Given that the local public property lands were not taken into accounting, the values of assets in financial statements of territorial administrative units dropped by 3.7 billion lei.

The auditors found out that the Chisinau Municipal Council procrastinates the adoption of decisions on the real estate management; hence, non-officialised lease relations take root, and therefore, revenues in the municipal budget are not collected. AAPL continues the flawed privatization practice and assignment of lease or rental property by avoiding procedures of auctions or tenders.

The Municipal Council manages 14 joint stock companies, 52 municipal enterprises, 16 public healthcare enterprises and five state enterprises.

(Reporter V. Bercu, editor L. Alcaza)