21 May 2004 15:43
Russian auditor spells out complaints against Chukotka administration
[Presenter] The Chukotka Autonomous Area, whose governor is the billionaire Roman Abramovich, is effectively
bankrupt. The results of an investigation carried out by the Audit Chamber show that the region's debt is over 150
per cent more than its revenue. At the beginning of the year, when the Audit Chamber embarked on its investigation, the
chamber's head Sergey Stepashin said the auditors' work was not connected with Abramovich's purchase of
Chelsea Football Club. But nobody hid the fact that there were questions of a moral nature to be asked of the head of
Chukotka. Aleksey Ivliyev has more details of this.
[Auditor Sergey Ryabukhin, addressing news conference] The region is bankrupt.
[Correspondent] The Audit Chamber today published three sets of complaints against Chukotka governor Roman
Abramovich. The most important of these relates to the domestic debt owed by one of Russia's most inaccessible
regions.
[Ryabukhin] As of 1 January this year, the debt owed to the state, including the cost of servicing it, amounted to
R9.3bn. This is over 150 per cent more than the region's own revenue.
[Correspondent] The second set of complaints relates to offshore companies based in Chukotka. The representatives of
the Audit Chamber reckon that last year alone the budget lost R13.7bn through tax perks enjoyed by companies belonging
to the Sibneft empire.
[Ryabukhin] Twenty-two companies are registered in Anadyr [the Chukotka capital], basically under a single legal
address. Most of them are companies which do not produce - [changes thought] do not conduct economic or financial
activities on the territory of the constituent part of the federation, but have offices there. It is these 22 companies
- mostly part of the Sibneft structure, involved in Sibneft's financial flows - which were granted tax perks on
their assets and their profits.
[Correspondent] The third set of contraventions, as the Audit Chamber views it, relate to a massive number of
financial irregularities.
The leadership of the autonomous area, which does not agree with all three sets of complaints, reacted after this
news conference. Chukotka ran up its debt before the start of 2001, in other words before the governor, Roman
Abramovich, took up office. Part of it has already been restructured and this process will be completed by the end of
2004, says a statement issued by the leadership of the autonomous area.
However, the Audit Chamber has already sent the results of its investigation to the government, the State Duma and
the Federation Council.
At this point, the confrontation between the Audit Chamber and Roman Abramovich, which began with criticisms made by
the leader of this watchdog body, Sergey Stepashin, may be regarded as temporarily suspended.
[Sergey Stepashin, chairman of the Russian Audit Chamber, speaking on 7 July 2003, caption] There is a reserve for
obtaining additional revenue for the budget, just as there is a reserve for ensuring that the money which oil companies
earn is spent on the opening of new wells and advancing the national wealth, and not on the purchase of Chelsea Football
Club. In general I regard this episode as a challenge to the country, as a challenge to the country. Quite apart from
obtaining oil companies, ones which the entire country once helped to build, for nothing, haven't things already
been too easy? This is a challenge to the country. I regard this as a politically ostentatious challenge. For this
reason, very tough economic measures must be taken in this area.
[Correspondent] The comments made today by Sergey Stepashin's deputy about Roman Abramovich's purchase were
calmer.
[Ryabukhin, chuckling] I am fond of football. But this has nothing to do with auditing measures. Football and
politics are outside that sphere.
[Correspondent] But the leadership of the Audit Chamber preferred not to speculate on whether Roman Abramovich can
now sleep soundly or to say whether or not officials from the Prosecutor-General's Office would show an interest in
the results of the investigation.
[Ryabukhin] I think the prosecutor's office will draw the final conclusion. Having received our report, the
prosecutor's office will have to -
[Female journalist] Aren't these technicalities?
[Another auditor setting alongside Ryabukhin] This is a problem for the prosecutor's office. Goodbye.
[NTV Mir] |
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