15 April 2004 11:56
Sale of local utilities illustrates depth of Russia`s financial straits
April
[Presenter] An auction of despair: Sverdlovsk Region is selling off the public utilities system of an entire
district. The reason behind this unusual decision is a profound crisis in the system. The authorities are hoping a new
owner will be able to resolve all these problems. Residents, however, no longer have such confidence.
Special correspondent Inna Osipova reports from Sverdlovsk Region:
[Correspondent] Eleven boiler houses, a number of gas distribution stations and more than 70 km of central heating
and sewage pipes have been put up for auction as a single lot. Sverdlovsk Region is selling off the public utilities
system of an entire district.
Anyone who wants to may purchase the public utilities of Irbitskiy District in open trading. In their entirety, the
utilities have been valued at R85m. The public utilities system has already been declared bankrupt. It has huge debts to
fuel suppliers, tax agencies and its own employees. Stokers at the district's boiler houses haven't once
received their pay in full over the past five years.
[Stoker at work in boiler house] They've been paying R500, that's all.
[Correspondent] What can you do with that?
[Stoker] What do you think? Pay off my debts.
[Correspondent] The main reason for the crisis in the Irbitskiy public utilities is the public's failure to pay.
In just one settlement, (?Fomino), nearly a hundred people owe money. The most inveterate nonpayers, the Kochergin
family, have debts of R40,000 and seven children.
[Valentina Kochergina, at home, with small children] I'm perfectly well aware of all this but I've nowhere
to get [breaks down in tears].
[Correspondent] Utilities employees treat the debtors with understanding and accept not just money but anything they
can put to use.
[Ivan Melkov, head of Unit One of the Irbitskoye Public Utilities municipal unitary enterprise] It's calculated
in spare parts or valves, whatever. What can you do? You have to meet people half way somehow. It's mostly
pensioners who keep up with their payments. They're the only ones who're still paying. The rest, well, people
have nothing to pay with.
[Correspondent] The district's heating system is in such a state that homes are rarely warmer than 14 degrees
during the winter. Many flats have long been using wood stoves. When they found out the utilities were to be auctioned
off, local residents decided it was time to fit a real brick stove.
No-one believes a new owner would get the utilities section out of its crisis and both tenants and district leaders
are hoping that no-one buys the assets that are being put up for sale.
[Vladimir Yazunov, head of the Irbitskoye Public Utilities municipal unitary enterprise] The heating system's in
a terrible state. It all needs changing but it's a big district, 40 km one way and 25 the other.
[Correspondent] The main danger is that if no-one wants to buy the utilities in their entirety, they will be sold off
piecemeal. Then buyers most probably will be found but only for such profitable sectors as the gas distribution stations
or boiler-houses. It's unclear who'd service the worn-out central heating system then.
[NTV Mir] |
RUSSIA IN FACTS
