Transparency International: Renovation law is an excellent opportunity for corruption

Transparency International: Renovation law is an excellent opportunity for corruption

An expert has revealed four corruptogenic factors in the law adopted by State Duma, which give the officials sweeping powers.

Independent examination of legal documents carried out at the request of the non-profit organization Transparency International Russia has revealed four corruptogenic factors in the Law on Renovation, Kommersant reports.

In particular, Legal Expert Denis Solntsev, accredited as an expert for the independent anti-corruption examination, has found that the documents, based on which a special fund dealing with the renovation would work, have yet to be approved. Neither it is known how the fund will "attract money from citizens and organizations" and "select contractors."

In addition, under the law adopted in the third reading by the State Duma on June 14, "the fund will be able to act as a developer and attract the funds of co-investors," however, the mechanisms for attracting financing have not been determined by law and have been, in fact, "entrusted to the fund's management," Solntsev believes.

He also noted that the renovation would be carried out on the terms of shared construction, but without the guarantees and protective mechanisms provided by the law 'On Shared Construction,' which would grant too much power to officials. Uncontrolled renovation has been highlighted as a separate factor.

According to Solntsev, "the renovation fund is a non-profit organization, but it is withdrawn from any control provided by the law 'On NGOs', meaning that it is not obliged to refer financial and substantive reports and other documentation to the Ministry of Justice, as well as to disclose the personal composition of the management."

"Based on these factors, it can be concluded that such broad powers provide scope for corruption," the expert's report, sent to President of the Russian Federation Vladimir Putin, the State Duma, the Federation Council, and the Ministry of Justice, says.

It is noteworthy that the examination held by Denis Solntsev mentions only one structure, which will deal with the implementation of the demolition of rundown five-story buildings in the capital, the Fund for the Promotion of Housing Renovation in Moscow.

However, as previously reported by the CrimeRussia, a structure with an almost identical name was established on April 26, the Fund for the Promotion of Programs and Projects for the Renovation and Reconstruction of Moscow Apartment Buildings. After familiarizing with the list of fund founders, the CrimeRussia detected persons directly associated with the business structures of disgraced oligarch Sergey Polonsky, who lost the license of Sodbiznesbank and the asset of former spouse of the head of Rosneft, Marina Sechina, in 2007.




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