Utilities sector is a hostage " claims of corruption "of officials

Baku/07.11.13/Turan : Transfer of public sector in the management of international companies to prevent " corruption appetite " of officials . Moreover , preparing plans for the unjustified increase in tariffs in the sector, the government actually announced intentions " to patch budget holes at the expense of the citizens" , experts say.

Corruption interests of officials do not let achieve the transfer of influential international companies to utility companies under long-term concessions, said the expert of the NGO coalition "National Budget Group" (NBG) Rovshan Agayev. He believes that the management of public enterprises public sector private sector would not only improve its stability and also save billions of dollars in paper money from the public sector budget.

According to estimates NBG only in 2007-2013 with public funds (state budget and the State Oil Fund of the Azerbaijan Republic ) distribution system (JSC "Azersu") has been granted 2 billion 950 million manats , power generation and electricity distribution network ("AzerEnerji" and "Bak?elektriksebeke") - 1 billion 730 million manats , the gas distribution network ( "Azeriqaz" SOCAR ) - 530 million manat. Overall, taking into account international loans , these structures have received grant funding from the state for a total of about 6 billion manat.

Rovshan Agayev considered unreasonable by the Finance Minister on the need to increase utility rates of self-supporting enterprises in connection with plans to increase the salaries of their employees. The question is: " What are the reasons the government allocates funds to self-sustained irreparable public sector monopolies and the government has had the same financial assistance to private companies to manage public sector ? "

Moreover , support for public sector through government subsidies leads to uncontrolled spending . For example, recently the administrative building of "Azersu" was repaired without any need . Car park company added dozens of new expensive cars. Inflating the cost of these purchases the management of "Azersu" did not think about the low wages of their employees.

We can remember one glaring fact waste of funds in the municipal sector . Recently, the local media have official accounting records of how the management of JSC "AzerEnerji" spent in restaurants, hotels and saunas thousands of funds under the guise of travel needs.

In the early 2000s, the government of Azerbaijan was seriously considering the idea of ??reforming the management of public utilities sector, and even started to transmission sector in the long-term management . Electricity distribution network in Baku , as well as regional networks in Sumgait , Sheki, Shirvan , and were transferred to the management of local and foreign companies . In 2005-2006, the contract had been terminated under the pretext of non-fulfillment of the obligations of investment management companies and misappropriation of public funds. The government's negotiations with the World Bank on the reform of management system in the Gas and Water deadlocked. - 08B-


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