The chamber said about the inefficient use of funds of the NWF

Experts of the Supervisory authority noted that the shortcomings in the implementation of infrastructure projects increase the risk for investment in these funds of the national welfare Fund

In the implementation of infrastructure projects financed with funds from the national welfare Fund (NWF), there are “systemic deficiencies and problems”, the report said the audit chamber (SP).

Such disadvantages of carrying out an inspection of efficiency of use of funds of the NWF experts of the Supervisory authority attributed the low level of construction work and the contractors breach their obligations, as well as delays in tender procedures and implementation of passports of investment projects activities.

In the joint venture highlight the underfunding of individual infrastructure projects at the expense of own funds of the initiators and other non-NWF sources, which increases the risk for state investments.

“Thus, the most used mechanisms of state-private partnership and the risks are largely borne by the state. Given the above, it was noted that the actual implementation of individual infrastructure projects is evidence of the inefficient use of allocated funds of the NWF”, — underlined in the message of audit chamber.

Performed Supervisory authority the audit revealed low yield of investments of the Fund in securities of Russian companies related to the implementation of infrastructure projects, as well as deposits and subordinated deposits opened to Finance such projects. According to the joint venture in 2016, the yield on such investments amounted to only 3.2%.

In the joint venture separately stated on the deficiencies in the expenditure of the Reserve Fund used to cover the Federal budget deficit.

“In some cases in 2016 operations on placing of means of the Federal budget on Bank deposits and securities under repurchase agreements conducted simultaneously with the use of the Reserve Fund, evidence of wasteful expenditure of the Fund,” reads the report.

On April 1, 2017 the volume of NWF was estimated by the Ministry of Finance in $of 73.33 billion, contingency Fund — $16,19 billion.

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