Natig Jafarli: Thefts in Azersu Exceed Tribute Paid by Russia to Kyzyl Orda

Baku / 03.09.18 / Turan: In 2017, the cost of services for 1 cubic meter of water-sewage was more than 2 times compared to the price for the sale, the financial report of Azersu LLC for 2017 says. The report says that the cost of services for 1 cubic meter of water-sewage is 1.17 manat.

"For the fiscal year there were operating losses and shortage of money. The reason for this is the tariff set by the Tariff Council, which is lower than the cost of services," the Azersu report says.

The report notes that the cost price was 1.41 manat, and the average price for the sale was 0.74 manat.

Economist Natig Jafarli in his Facebook page commented that Azersu claiming that it sells water at half the cost of production does not say how the cost itself is calculated.

"They lay pipelines for the state-budget money, and they receive subsidies and tax incentives from the state budget (their tax debts are often annulled), and the water flows by itself from the Kura, or through the Oguz-Gabala-Baku pipeline by gravity. So for what reason should Azersu work at a loss?"

At the same time, the economist stressed that he worked at Azersu on three international projects and what he saw gives him grounds to say that the reason for the losses is incorrect management.

"The company employs more than 10,000 people. In fact, only 2,000 of them work, and the rest are relatives of the company"s executives and simply receive salaries. A hose, which is sold at 80 gapik per meter in the flea market Sadarak, is registered at 7 manat in Azersu. During the year, the amount of thefts for construction and repair matters exceeds the amount of tribute paid by Russia to Kyzyl Orda for 300 years. Under such circumstances, the cost of water does not play a role," N. Jafarli said. -71D-