22 December 2003 20:24
Auditors accuse Russian ministry of squandering forestry budget
Moscow, 22 December: The manner in which Russia's Ministry of Natural Resources performs its responsibility to
protect the environment is costing the state millions. Auditors from the Russian Audit Chamber came to this conclusion
after carrying out an investigation into whether funds allocated from the federal budget in 2002 and the first half of
2003 for protection and regeneration of forestry resources had been spent effectively and on the designated purpose.
The chamber's information and public relations directorate told an ITAR-TASS correspondent today that the
auditors had exposed "evidence of breaches of the Russian Federation's budget legislation and forestry
laws", which had led to "big losses of budget funds". The auditors believe the suspension of two sections
of article 106 of Russia's Forestry Code contravened procedures for levying minimum rates of forest tax and rent.
The value of uncut timber has fallen by over 10 per cent. The felling fund is producing only a fifth of what it is
supposed to. As a result, the budget is sustaining a shortfall of about R15bn a year.
Because of the ministry's failure to vet spending, 1.46m budget roubles earmarked for protection and
regeneration of forests have been wasted on "various conferences of ministry officials and on other purposes".
Furthermore, the rates of forest tax set by the Russian government and the regional authorities have turned out to be 60
per cent lower than current auction prices. In 2002, state budget spending on protection and regeneration of forests was
R4bn higher than revenue from forestry resources. In a number of regions regeneration of woods "is getting
virtually no funding". In Khabarovsk Territory, for instance, forestry resources yielded revenue of R185m, but no
money whatsoever was made available for their regeneration.
Meanwhile, losses from forest fires across the country as a whole amounted to R11bn.
[ITAR-TASS news agency] |
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