The Construction Department of the Vitebsk Regional Executive Committee inefficiently used Br3.8 billion of budget funds in 2008

September 7, Vitebsk / Olga Bogacheva - BELTA /. The Vitebsk Regional Committee for State Control has revealed numerous violations in the use of budget funds by the State Enterprise "Capital Construction Department of the Vitebsk Regional Executive Committee" during construction work in 2008. This was announced at a meeting of the Vitebsk Regional Committee for State Control by Yulia Avhukova, head of the department for control of budget, financial and social spheres of this agency, as reported by a BELTA correspondent. In total, the audit found inefficient use of Br3.8 billion in budget funds for five facilities, excess and illegal receipt of Br310.6 million, overstatement of the cost of completed construction work by Br1.1 billion, and damage to state property in the amount of Br299 million. The enterprise considered its main goal in its activities not to improve the quality of construction products, but to generate profits to satisfy the interests of the team. As a result, the inspection of the Department of Construction Control and Supervision for the Vitebsk Region for 2007-2009 revealed 791 defects at 31 facilities where the regional Capital Construction Department performed the functions of the customer and technical supervision. A total of 1125 defects were identified at 52 facilities, and 130 orders were issued. However, the profit from the sale of services of the regional capital construction department in 2008 amounted to Br658 million, profitability was 49.5%, and the average monthly salary of employees during this period was about Br1.6 million, including the director's salary of almost Br3.4 million. For comparison, Yulia Avhukova noted that the average monthly salary in the construction industry in the region for 2008 was Br985 thousand, including the head of construction and installation organizations - about Br2.5 million. The results of the Committee for State Control's audit showed that the enterprise improperly performed the customer's functions for the procurement of material assets, and supplied incomplete and substandard equipment, as well as equipment that was more expensive than provided for in the design documentation. For example, fitness equipment was purchased for the cultural and recreational center of the Luzhesny boarding school-gymnasium from a Gomel entrepreneur with a wholesale markup of 244.8%, at a price three to seven times higher than the cost of similar equipment from domestic manufacturers. Numerous violations were also identified during the construction of the Children's Park in Orsha, the construction of sewage treatment facilities at the Verkhnedvinsk butter and cheese factory, and in Polotsk. In addition, the construction of most of the audited facilities, where the regional Capital Construction Department acted as the customer, was carried out in parallel with the development of construction projects. This led to low work rates in the initial stage of construction, increased deadlines, and inefficient use of budget funds. Based on the materials of the audit, the Committee for State Control initiated a criminal case on the fact of illegal conclusion of a contract for the purchase of technological equipment by officials of the regional capital construction department, and a decision was made to conduct further investigation in order to bring the guilty persons to justice. -0-