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A Moscow fraud: the Federal Antimonopoly Service accuses the Moscow government in violating the law

By Uliyana Ivanova
kasparov.ru, May 18, 2009

The Federal Antimonopoly Service stated that the Moscow government violated the law neglecting tenders in choosing managing companies for condominiums. Such news appeared at the FAS web-site on May 18.
According to the Housing Code of the Russian Federation, the local government had by May 1, 2008,† to conduct tenders so that to determine managing companies if apartments owners failed to independently choose the type of management for their apartment blocks. According to FAS, owners in 1.252 apartment blocks in Moscow failed to choose a managing company.
 FAS also revealed a violation of law in the actions of the Moscow Housing and Communal Services Department. The department Уstrongly advisedФ to the municipal heads to employ a certain company (GUP MiSAT) in waste collection and disposal, and to conclude contracts with GUP Zhilishnik-1 as a managing company.
FAS ordered that the Moscow government should restore market competition.
УThis case is a drop in the ocean, and results from a poor law,Ф said the leader of the YABLOKO party and deputy of the Moscow City Duma Sergei Mitrokhin in his interview to kasparov.ru.
According to Mitrokhin, the present Housing Code does not protect owners from fraud and the latter is often observed even on the part of the state. УThe Housing Code was developed by those who had no notion of the real situation. Probably, this was done due to mercenary motives,Ф he said. Mitrokhin also indicated that he submitted amendments to the law several times but they did not pass.
We should note here that other politicians, including Deputy of the State Duma Galina Khovanskaya, also raised their voices in favour of changing the present housing legislation. She prepared over 300 amendments to the present Housing Code stating that in its present form the law considerably worsens the position of the citizens.
The Housing Code had to come into force in November 2008, but was postponed due to active protests from a part of the State Duma.

See also:

The original at kasparov.ru
Anti-monopoly legislation
Housing and Utilities Reform


By Uliyana Ivanova
kasparov.ru, May 18, 2009