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Penza officials to scrutinize “Car Transportation Enterprise,” other municipal companies

09:55 | 22.12.2015 | Economy

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Penza, 22 December 2015. PenzaNews. The Penza city administration head Victor Kuvaytsev has ordered to conduct a detailed effectiveness analysis for municipal institutions and companies during his first weekly session in the new office that was held on Tuesday, December 22.

The Penza city administration head Victor Kuvaytsev

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“Also, I would like to instruct the officials responsible for the municipal budgetary institution ‘Car Transportation Enterprise’ (CTE) to analyze it and, within two weeks, come with a conclusion on what should we do with this enterprise in the future,” the mayor said.

The upkeep for the enterprise is “quite expensive” for the city, he pointed out.

“The institution, while being a budget company, performs no social functions or use for the city. Moreover, based on the Chamber of Accounting and financial department checks, we see there are too many cases of negligence, too many cracks in the wall, and the budget funds are used very poorly,” Victor Kuvaytsev stressed.

The city administration head also asked to subject “City Center of Trade and Services” to the same scrutiny.

“I would like to know your opinion on it, too, and most importantly, just to clear it up – what is the current municipal function of this municipal enterprise with a sizeable property, including a land plot?” Victor Kuvaytsev added.

According to him, the enterprise has been bringing no profits for a long time while being tax-exempt.

“After that, we will seek to analyze the financial and property activity of all our municipal enterprises, to realize the state of affairs and the direction to proceed with these companies,” he claimed.

Victor Kuvaytsev also noted that neither of the aforementioned enterprises transfers the required annual profit portion to the budget, and the profits usually generated remain within the margin of 20,000-30,000 rubles, while an enterprise of such level must be earning money.

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