State Property Service got angry at media, but avoided answering questions

The information published in the media based on the audit analysis of the Accounts Chamber and its conclusions about the activities of the State Property Service (SPS) under the Ministry of Economy aroused an anger of the SPS management. While refraining from responding directly to the internal control body on the execution of the state budget, the SPS accused the media of subjectivism and context avoidance. The SPS issued a statement on the matter. However, this document provides no sufficient clarity on the dark aspects of the SPS' activities. Turan News Agency tried to analyze the response on the example of the Accounts Chamber' statement about the allocation of 9.6 million manats to one of the liquidated enterprises. According to the SPS, JSC "Dask?s?n Filizsaflasdirma", which has long been open for privatization, was liquidated by order of the President of Azerbaijan from 1 September 2020.The Cabinet of Ministers was instructed to take the necessary measures, as well as to address other issues arising from this document. Note that "Dask?s?n D?mir Filiz" LLC was established with a 100% stake in "AzerGold" JSC to ensure its execution. The property of the previous company was sold to "Dask?s?n D?mir Filiz" LLC in accord with requirements of the current legislation." It should be recalled that in early 2022, Turan news agency contacted "AzerGold" to clarify dark sides of the sale of the Dashkesan mining combine's property. The response to the information enquiry did not cover all points.The reply read: "An agreement has been concluded between "Dask?s?n D?mir Filiz" LLC and "Dask?s?n Filizsaflasdirma" OJSC, which is in liquidation, for the purchase and sale of existing assets aimed at the restoration of Dashkesan iron ore operations. According to the assessment of an independent appraiser, the purchase and sale of assets for a total amount of 18.6 million manats was carried out. The said amount was financed with state funds." From the statements of both the SPS and "AzerGold" CJSC it follows that a large amount of funds was paid from the state budget to the state-owned, simultaneously liquidated enterprise. That is, the state sold the property to itself. However, the question of "how the money was spent" remains open. Regarding this issue, it is also unclear the fact that 9.6 million manats was allocated to support activity of "Dask?s?n D?mir Filiz" LLC for the purpose of "recovery of the state enterprise and completion of restructuring in this area". The SPS considers it not important to provide information on the details of rehabilitation and restructuring activities at the enterprise. In other words, the question of why 18.6 million manats allocated from the same source were not enough for implementation of the mentioned measures remains unanswered. The SPS remains silent on these issues. Shifting the responsibility on "higher instances", the SPS notes that the funds in the amount of AZN 9.6 million for recovery and restructuring of "Dask?s?n D?mir Filiz" LLC, based on the proposal of the Ministry of Economy and the approval of the Ministry of Finance, were allocated by the Cabinet's order of 30 August 2021.

Source: Turan News Agency