About the vaccum cleaner

The Abkhazian Control Chamber has published the annual report. Though formally it refers to 2015, in fact the auditors report covers much longer period, including the last 5 years.

The document is too large for brief analysis, but one aspect is worth mentioning. The main control body has once again concluded, that the state owned enterprises operations are ineffective.

The enterprises, owned exclusively by the state, remind one of a vacuum cleaner, simply sucking money in.

Considering the amount of investments, the earnings, mentioned in the official reports, look ridiculous.

The Control Chamber report contains the concrete example. All tourism operators, reporting to Tourism and Resorts Ministry, proved out to be ineffective. The conclusion is fair in regard to almost all state owned enterprises.

Alas, the state owned enterprises in Abkhazia were turned into mere feeders. Their directors are being supported by the relatives – high-ranking officials. They are free to do what they will, neglecting all economic laws and leading their enterprises to bankruptsy. The idea of sharing the profits with the state budget never comes to his mind.

Any manager, employed by private business, having allowed himself at least part of these tricks, would sooner or later be charged by the owners and face the necessity to sell whatever properties they have to compensate for the losses. Or flee from Abkhazia only to be caught elsewhere.

The state owned enterprises managers feel free to act as they will, because the Abkhazians strongly believe, that state property has no owner and belongs to those, who came across it.

The state shares the citizens attitude, not considering itself the owner. Otherwise it is hard to understand, why the national criminal  code foresees no punishment for mismanagement of state property or money.

It goes for the land as well, that has been already distributed – partly sold, the rest waiting for the right time – despite the legal ban.

Until this attitude to state property changes, our perspectives look bleak. Again and again some will summon patriotic rallies, establish control over ownerless property only to provide for well-being of the certain clans.

It will last until the country disappears due to the “effective” management.

The opinions expressed in the article convey the author’s terminology and views and do not necessarily reflect the position of the editorial staff

Published: 26.12.2016