05 June 2004 12:47
Russian "inspectors" to lose right to shut down businesses
[Presenter] The government today approved changes to the administrative code. From now on, businesses cannot be
closed without a court order. The government believes this will reduce opportunities for corruption since companies can
no longer be shut on the say-so of, for example, the fire service or public health authorities. Aleksandr Ruvinskiy
reports.
[Ruvinskiy] The scope for bribery will be significantly narrowed once the amendments to the administrative offences
code are passed. The draft amendments were debated by the government today [3 June] before being submitted to the State
Duma. All kinds of inspectors from the fire service, the police and the public health and sanitation bodies are to lose
their main weapon, the right to put a company's business on hold. The debate was opened by Prime Minister Mikhail
Fradkov, who said changes are needed not only to the code but to a large number of regulatory documents.
[Fradkov] It has been calculated that over 300 federal laws will need changing. In particular ministries and
government departments will lose their extrajudicial powers to stop a company from carrying on its business and their
powers to prosecute will be curtailed. The government has instructed the relevant federal bodies to draft changes to the
relevant regulatory documents once these amendments are made to current legislation. [Passage omitted]
[Correspondent] Major businesses have their own legal departments and, more importantly, the resources to tackle the
issue. But medium and small businesses faced the constant threat of ruin. Now they can breathe again. It does not mean
they can act irresponsibly, but they will only be stopped from operating by court order. According to Minister of
Justice Yuriy Chayka, this is in line with international practice and is part of the administrative reform taking place
in our country.
[Chayka] A new and particular type of administrative sanction is being introduced - the administrative suspension, in
full or in part, of the activities of corporate entities. This sanction will be applied exclusively through the
judiciary. A new measure is being introduced to ensure that cases are handled properly - a temporary closure order for a
period not exceeding 48 hours. At the same time, it is intended to amend sectoral and federal laws in order to exclude
the possibility of a commercial entity being stopped extrajudicially from carrying on its business. The thrust of this
draft law fully complies with the administrative reform being carried out in our country, one of the goals of which is
to reduce state interference in the activities of commercial entities, and also with the reform of the courts and
judiciary that envisages a greater role for the courts in handling issues that entail restrictions of rights. [Passage
omitted]
[Radio Mayak] |
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