OREANDA-NEWS. August 03, 2012. As reported at the Plenary of Audit Chamber and Head of the audit of local government Sergei Stirbu, the authorities of Chisinau failed to ensure effective management of public finances and inefficient use of assets of the municipality.

According to the auditors, the city authorities could have at least a 30% increase in tax revenue budget. The auditors found significant reserves in formation of the budget revenues of the municipality, and their underestimation or overestimation caused unwarranted transfers of funds from the budgets of Level I and II, forming an imbalance of public finances.

For example, in 2010 the municipality received from the state budget with violation rules about 199 million lei, and in 2011 it failed to implement 58 million lei, transferred from the state budget. Among the shortcomings of management of public property in Chisinau Stirbu called high proportion of transfers to social security, problems in the field of public procurement, inefficient use of investment in construction of public facilities and repairing of roads, lack of consideration in the management of state property.

In particular, the auditors noted that local authorities have not taken steps to optimize the procurement and compliance with legal and regulatory framework. Public procurements in excess of 322 million lei were held in violation of procedures.

They identified contracts worth around 9 million lei with the companies where founders and managers are the same, which, according to the auditors, shows the increased risk of fraud. About 480 million lei from the budget of the municipality are frozen in objects of unfinished construction, thus, invested 80 million lei in the objects are no longer used by the municipality. Non-transparent procedure of lease of municipal real estate led to omission of income amounting to 26 million lei.

Due to illegal privatization of real estate capital city budget did not receive 34 million lei, and poor management of land fund of the municipality led to loss of revenue of 96.5 million lei. The local public administration of Chisinau failed ensure full income from dividends received from the municipal plants, worth about 31.4 million lei (2010-2011.) and 20 million lei (2007-2008.). In addition, they noted failure of the recommendations of the Accounting Chamber, contained in previously published reports.