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backGLOBALtalk July, 2011
Russia: Mayor puts the brakes on car plant corruption
Moscow’s biggest industrial units have turned into money laundering factories wasting billions and running up salary debts of millions more, according to Moscow Mayor Sergei Sobyanin.
He slammed the management of vehicle manufacturer ZIL and machine-building plant TMZ, for an outrageous situation that “would be hard to find anywhere else.”
“It’s not private enterprises that face the most severe problems, but those owned by the city,” he added during yesterday’s meeting with trade-unions leaders.
Sacking the boss
The recent scandal is likely to explain the abrupt dismissal of ZIL’s former head, Konstantin Laptev that happened just few weeks ago.
The overall salary debt at the plant – which was famous for producing cars for the Soviet leadership – has reached 200 million roubles, while Laptev himself enjoyed wages of 250 million roubles per year, Sobyanin said.
“This money would be enough to cover all wage arrears,” the mayor continued adding that the Moscow Government had stepped in to loan the troubled firm enough money to pay its staff.
Over the past six years 6,000 ZIL staff employees have been on 3-day-a-week cycles with average salaries of 14,000 roubles ($500) a month, gazeta.ru reported.
Shuttle builders shot down
The birthplace of the Soviet-era Buran space shuttle has also run into trouble due to ill-management.
And the latest boss managed to keep his seat for less than half a year – Sergei Ilyashenko left his office in March – while Sobyanin said that there has been a criminal case initiated against TMZ’s management.
The plant has received a grant from the Moscow government of 197,8 million roubles last autumn to stave off staff cuts in 2010, ITAR-TASS reported.
But now workers have been laid off and production has halted.
Hope for the future
While Moscow’s old industry units are in serious crisis, the mayor is still hoping that a techno economic zone in Zelenograd will be profitable enough to revitalise city industry.
Sobyanin said 120 companies have registered there already despite construction delays. Several billion roubles will be paid out by City Hall to complete the project, gzt.ru reported.
But generous municipal subsidies for industry have been wasted, a former official added on condition of anonymity.
“For the money that has been invested in plants over the past 10 years, it would be possible to start building very good vehicles, but nothing has appeared,” he said.
“This money has just disappeared,” he concluded.
Source: The Moscow News - GAI
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