Almost 2/3 of municipal enterprises generate regular losses
Of all 76 municipal enterprises and medico-sanitary public institutions, 30 are activating with profits, the rest generating losses, declared the chief of Accounting Evidence and Economic Analysis Eugenia Ciumac, on July 23, during a mayoral operational meeting.
Of 14 limited liability companies, in which the CMC holds shares, only for „Apă-canal Chişinău” the CMC is the total share holder, in two companies – it has 36%, and in two others – 6%.
Every second of these 14 companies is generating losses. Five companies generated a loss of 1.5 billion lei, the largest part attributed to „Termocom”, enterprise which registers dynamic annual losses. Thus for 2003, the enterprise registered losses of 128 million lei, in 2004 - 140 million lei, 2006 – 146 million lei and 7 of these registered a net profit.
Severe losses were registered by the Urban Bus Park – 8 million lei, the Department for Electric Transportation – 8 million. Of all 23 municipal locative fund management enterprises, 21 registered dynamic losses, for the start of 2005 – 7.6 billion, for the beginning of 2006 – 9.6 billion and on January 1, 2007 – 12.3 billion lei.
In 2006, 17 companies and 13 medico-sanitary institutions registered profits, including the Central Market, the Department for Capital’s Constructions, Green Spaces Association, Dedrariu Park, etc. The „Edilitate” Trust registered last year a profit of 10 million lei, Autocontranst – 1.6 million lei, the Chisinau Mine – 289 thousand lei, the Auto Enterprise nr.4 auto – 44 thousand lei, the Municipal Mortgage Agency – 3.9 million lei.
According to Eugenia Ciumac, it is the time for CMC to determine which public services must be managed by the public local administration, including plans for reorganisation in other juridical structures and organisational formats. Although practice shows that public services can be licensed in an integral format, Ciumac believes that in Moldova only hygiene related services, green spaces, road construction, water and thermal energy supply can be managed by the local administration; all others could be managed via alternative means of administration.