Many articles in media about the embezzlement and transfer of ownership of the public property to other individuals by the Chisinau City Hall were confirmed in the recent analysis of the National Anticorruption Center. It was published on May 3 of this year. The analysis reveals a number of illegal actions by the officials of the City Hall and the public property frauds.
According to the Expert-Grup report, the capital municipality is losing hundreds of millions lei due to the privatization tenders and property valuation frauds. That’s how it happens: a person, interested in some certain objects rent it and later presents documents for the privatization of the building or the plot of land. The decision on privatization is adopted by a simple majority of the members of the commission for the privatization of the non-residential rooms. There is no tender because the room was on rent.
Most of the privatized this way objects are situated in the city center or in its prestigious districts. All of them were obtained illegally. The City Hall also offers a number of non-residential rooms on rent at a very low price. Then those rooms are offered on rent to subtenants but with higher prices. The tenants get all the profit, but not the Chisinau Municipal Council.
The worst thing is that there is no information about the privatizations of public property anywhere. Despite the fact that the General Department of Economy, Reform and Property of the Chisinau City Hall registers the public property, in fact it manages only a part of it.
The illegal renting of the municipal rooms without the tenders
The NAC’s audit showed that renting of the public property without the organization of a tender is illegal. As a result, the municipal authorities receive lower income. The NAC’s analysis revealed cases when the public property was leased at the 20 times lower price than the market one.
According to the NAC’s reports, the privatization of non-residential rooms is one of the most vulnerable areas of the public property management. The experts and the members of the privatization commission are responsible for the wrong cost estimation of the privatized public property.
Some individuals privatized the underpriced public rooms and subsequently sold them at much higher prices. The huge difference between the fixed price of the privatization and the market value of objects indicates a high level of corruption of the municipal officials.
The selective NAC’s analysis shows the difference between the price set by the commission and the one determined by the Cadastral Service. It is from 100,033 to 1,517,495 lei.
The Court of Accounts law reports confirmed the violations
The Court of Accounts law reports confirmed multiple irregularities in the public property management done by the local administration:
- The inability to register the ownership of municipal property, which creates the risks of loss of the rights of property and of their transmission to some other persons
- The absence of a Register of public property, which leads to an incorrect interpretation of the property situation
- The superficial monitoring of the expiry dates of rent by the Chisinau local authorities that creates a risk of non-payment of rent and utilities.