Money on development of North Caucasus went nowhere

The Institutes of Development of the Northern Caucasus During the work since 2014, they received about 73 billion rubles from the budget, but remain chronically unprofitable and did not even approach the achievement of the goals and tasks. To this conclusion, the Accounts Chamber came, the report on the verification was published on the Office website.

As it turned out, the money literally went to nowhere – the work of organizations did not help both the region as a whole and the industry that were chosen to support. Based on statistical analysis, Svetlana Orlova’s auditor stated that there was rather a negative effect on the growth rate of a real gross regional product – minus 2.6 percent.

The Accounts Chamber studied the work of joint-stock companies “Resorts of the North Caucasus” (KSK) and “Development Corporation of the North Caucasus” (KRS), regional development corporations operating in Dagestan, Ingushetia and Chechnya, Investment Development Agencies Stavropol, Ministry of Economic Development, Ministry of Finance and Ministries For the Affairs of the North Caucasus, abolished a year ago. The work concerned the period from 2014 to November 2020.

Auditors’ attention, among other things, attracted details of the work of organizations that, at best, testify to inconsistent and ill-conceived management. In particular, development institutions exhibited unrealistic KPI and treated themselves with their own plans.

For example, Krsk planned to create an innovative medical cluster, raised ambitious tasks for which in 2016 approved the Development Concept. However, later the goal was generally excluded from the program, after spending two billion rubles from the federal budget for its development. Only on the design and counting documentation about 90 million rubles went, but no one saw any results.

Special Economic Zones (SEZ) created in the region, which are managed by KSK, were not interested in investors. The amount of funds raised as of September 1, 2020 amounted to just over two billion rubles, which is ten times less than those declared in the plan, only 770 jobs have been created.

Auditors recommended to engage in the reorganization of institutions in order to determine adequate goals and tasks for them, calculate the need for budgetary funds and justify the effectiveness of planned costs. In addition, the joint venture is considered necessary to create a comprehensive system for assessing the activities of development institutions and their leadership.

On the eve, the head of the Accounts Chamber Alexey Kudrin said that in the next two or three years, the agency will check all the development institutions in Russia. According to him, the past checks have already given results, for example, in some organizations inadequately high salaries.

/Media reports.