Rustem Khamitov urged to strengthen control of arbitrary managers

The President of Bashkortostan Rustem Khamitov has held a meeting re efficiency of work in sphere of financial recovery and bankruptcy of enterprises.

“This theme is uneasy and rather painful. It is clear that in market conditions not all companies can be successful and bankruptcy of some enterprises is sometimes inevitable but this process often become the instrument for redivision of property instead of being a normal market mechanism” – the President RB stated, opening the meeting. He has ventilated the statistics, according to which Bashkortostan is considered one of the leaders in the country both by the number profitable enterprises and by the number of bankrupts.

“We are the first in Russia by the share of profitable enterprises: more than 80% of Bashkir companies work with profits and at the same time we are one the first in sphere of bankruptcy – 995 our organizations are found at different stages of bankruptcy here and every year this number goes up. 812 bankruptcy cases have been tried in 2009, 837 – in 2010 and 1419 cases – in 2011. For two years the number of bankruptcy cases, tried by our courts, has increased almost two times”.

Rustem Khamitov has admitted that the measures for financial recovery, undertaken in the Republic, don’t work and in his opinion bankruptcy is becoming a profitable business in the Republic and cushy job for some Bashkir functionaries.

“We have serious pretensions to work of arbitrary managers, which are often appointed to several enterprises at once, often located too far from each other. Such managers have full authority and real competence for managing the bankrupt’s assets and managers use these assets but often nor for saving the “sinking” enterprise. Arbitrary managers often sink this enterprise, receiving certain percents from the sold out assets. At that neither Republican authority nor municipal administrations are able to influence upon appointment of such arbitrary managers as well as upon the decisions they make. Why the mechanisms, aimed at financial recovery of enterprises, don’t work? Why such procedures as financial recovery and external control aren’t used or used too rarely in practice? The President RB urged the authorities to strengthen control of arbitrary managers because now this control is done practically only by the self-regulating organizations, consisting of practically the same arbitrary managers. “This system is deeply criminalized” – the President RB stated.

He has reminded that for today the arrears of wages in the Republic amount to 117 million rubles, including more than 80 million – the debts of the corporate bankrupts. Arbitrary managers aren’t interested in recovery of the enterprises they control and this is the problem, which has to be solved as quickly as possible, the participants of the meeting decided.