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Moscow Government is creating another monopoly

Press Release
June 1, 2009

The Moscow government has decided to abolish tenders for placement of state orders for certain types of work in construction, provision of urban amenities and housing and utilities services.

This information was released at the meeting of the Youth Chamber with the Moscow City Duma on Friday. Deputy Moscow Mayor Valery Vinogradov also participated in the meeting.

In evasion of the law On Placement of Orders for Delivery of Goods, Works and Services for the State and Municipal Needs the Moscow government plans to appoint a single contractor the state institution of the city of Moscow (the Moscow City Head-Quarters of Youth and Students Construction Units) without any mandatory tenders.

The heads of the company and representatives of the Moscow government informed the meeting that 100 mln roubles will be allotted to the company from the municipal budget for this goal. However, the bulk of the funds will go to a special training programme for young people (including training of some commanders and commissars), rather than provision of work.

YABLOKOs member Semyon Burd noted in his speech at the meeting that planting of trees, shrubs and flowers, provision of urban amenities and capital repairs of buildings may be regarded as qualified labour. Even at present the quality of these works leaves much to be desired, but if we allow students to implement such work, well get an even worse quality. Today it is important to develop competitive environment in the housing and utilities sector, as well as small business, in this case young people will be able to find jobs, said Burd.

Creation of such institution and granting it a single contractor status should be regarded as corruption, stealing of budget funds and emergence of one more monopoly on the Moscow market, said deputy head of the Moscow branch of YABLOKO Ivan Bolshakov.

YABLOKO is going to report this case to the Federal Antimonopoly Service as violation of anti-monopoly law.


See also:
Housing and Utilities Reform

Press Release
June 1, 2009