logo

Money allocated to municipal enterprises is not managed efficiently, report


https://www.ipn.md/en/money-allocated-to-municipal-enterprises-is-not-managed-efficiently-report-7967_1016396.html

Of the 259 municipal enterprises registered, 54 are not functional, but money continues to be allocated for their activity. Another ten enterprises hadn’t performed economic activities for over five years and as many haven’t performed activities according to their status. More than 20 companies have the status of municipal enterprises, but cannot be considered as such because they are football clubs, beauty salons or shops.

The information was presented in a news conformance at IPN by Tatiana Savva, who is the author of the “Synthesis of the Audit Office decisions for the first quarter of 2014”, produced by the Independent Analytical Center “Expert-Grup”. According to the author, 4 million lei was wasted in the municipality of Chisinau alone as the money was allotted to municipal enterprises that have the same functions as a number of private companies.

In another development, Tatiana Savva said the state took out a loan of €4 million for working out an information system at the Ministry of Finance and the state-run company “Fintehinform”. Though the system is ready, its implementation is over three years overdue.

Economic expert Dumitru Budianchi stated that having discussions with specialists, he found out that the system consists of different components that now cannot be united because they weren’t carefully planned.

The expert also said that the implementation of the Common Licensing Register is over one year late. It is paradoxical that in such a country as Moldova, which has an advanced ICT sector, the authorities face difficulties in implementing IT projects.

The “Expert-Grup” study was made within the project “Budget Process in Moldova: Monitoring Transparency and Promoting Public Control” that is implemented with the financial support of the Good Governance Program of Soros Foundation Moldova.