21 May 2004 14:10
Russia: Chukotka fiscal irregularities "of a technical nature" - local source
Moscow, 21 May: The total sum of financial irregularities discovered by the Audit Chamber in the Chukotka Autonomous
Area audit for 2003 and January-February 2004 is estimated to be R1.5bn, Audit Chamber auditor Sergey Ryabukhin told the
press today. The audit also discovered "numerous cases of irregularities in financial discipline, tax legislation
and implementation of the regional budget".
According to Ryabukhin, of the total sum of financial irregularities, R748m relate to illegal use of funds, R547m
relate to funds being misdirected, and the rest was due to irregularities in budget planning.
As of 1 January 2004, Chukotka's state debt was R9.3bn, exceeding its own income by more than 150 per cent. In
1994-95, the region received a "gold" credit [presumably credit granted for future gold production], as well
as other loans, which so far it has not paid back. As of 1 January 2004, the debt for the "gold" credit is
assessed at R6.2bn taking into account fines and penalties. Ryabukhin recalled that, when Roman Abramovich was taking up
the post of governor of Chukotka, he [Abramovich] had noted that the region was bankrupt, and since then the
governor's team had not managed to extricate the region from that state.
The results of the Chukotka budget audit show up technical irregularities in budgetary discipline, a representative
of the Chukotka Autonomous Area told Prime-TASS. "The final results of the audit of the administration are not
known, but they are more of a methodological nature and are linked to the incomplete nature of both federal and regional
legislation, as well as technical mistakes," he noted. "All monies were spent on the needs of the area and its
residents in accordance with their designation."
So far, the source in the autonomous area's government noted, half of the technical mistakes discovered by the
auditors have been put right, and the rest will be corrected over the next month.
[The Audit Chamber said some funds had been misspent because local authority staff had been receiving supplements to
their wages in contravention of current legislation, according to a report by ITAR-TASS news agency, Moscow, in Russian
1021 gmt 21 May 04.]
[ITAR-TASS news agency] |
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