Report on audit of Air Moldova Company's privatization to be published in Official Journal

Chisinau, 16 January /MOLDPRES/ - The Court of Accounts (CCRM) has found out more non-conformities in the process of privatization of the State Enterprise Air Company Air Moldova. The conclusions were set forth in an audit report, due to be published in the Official Journal (Monitorul Oficial) of Moldova on 17 January.

According to the Court’s report, decision-makers found out a lack of plans on the enterprise’s strategic development, as well as of the managers’ performance indexes, which prompted impossibility to monitor and compare the financial and economic results. Thus, during more years, the State Enterprise Air Company Air Moldova was characterized by financial instability and inopportune expenses, triggered by the inconsistent fulfillment of the tasks of the enterprise’s management.      

CCRM also found out a lack of a strategic vision and poor performances of the management, which led to a significant increase in the degree of the enterprise’s indebtedness. These directed the enterprise towards a financial impasse; thus, the company had to attract numerous investment, operational and salary credits, as well as a loan in form of state benefit.  

“The assuming by the management of unreasonable decisions led to the materialization of difficult financial situations for the enterprise, which triggered additional expenses, impossibility to recover the compromised debts, as well as the ceding of strategic patrimonial elements to creditors. Thus, the enterprise lost possibility to turn to account financial means worth about 41 million lei, which represented compromised debts, as well as the right to manage a real estate, to pay off a debt worth 45.7 million lei, with additional rental expenses triggered, amounting 320 million lei annually,” reads, inter alia, the report on the audit of the conformity of the process of privatization of the State Enterprise Air Company Air Moldova.    

The decision on this report will be submitted to the government, parliament, Prosecutor General’s Office, Economics and Infrastructure Ministry, Finance Ministry and Public Property Agency.