Following a review of the annual regional reports for 2012, the Support Fund for Utilities Reform has taken the decision to suspend funding a number of regions. Federal law No 185-FZ’s Article 23 prescribes the procedure for suspending funding according to the following circumstances:
- the improper use of the fund’s finances (uncovered in four regions);
- using the fund’s finances without ensuring an established share of co-financing (uncovered in 23 regions);
- the failure to meet the requirements for extending financial assistance in respect to reforming the sector (uncovered in one region);
- the failure to meet the requirements for completing regional targeted programmes in the established timeframe and within the stated parametres (uncovered in 42 regions).
Financial support was suspended after examining the 2010 annual reports in respect to 38 regions. Financial support was suspended after examining the 2011 annual reports in respect to 21 regions. Regarding the results for 2012, the major violation was the failure to complete in the established timeframe regional targeted programmes on relocating residents from dilapidated housing (financial support for implementing the aforementioned programmes was extended by the fund in 2011).
According to Federal Law No 185-FZ’s Article 23.1, regions can remedy their violations. Otherwise, the proportion of the allocations accounting for the violations should be returned to the fund.
Minister of Regional Development Igor Slyunyayev drew the attention of the Support Fund for Utilities Reform’s heads to the need to extend practical assistance to regions, so that they can remedy the uncovered shortcomings. The financing will then resume.
