OREANDA-NEWS. April 10, 2009. The Federal Antimonopoly Service (FAS Russia) initiated a case against the Moscow Regional Duma [legislature] for violating Part 1 Article 15 of the Federal Law "On Protection of Competition" (which prohibits competition-restrictive acts and actions of the authorities), reported the press-centre of FAS Russia.

In 2006 the Moscow Regional Duma adopted the Law of the Moscow Region "On the Regional Target Programme "Housing" for 2006-2010". The Programme had a Sub-Programme "Relocating residents form Shabby and Dangerous-to-Use Housing Stock". The Law determines that the Sub-Programme can be executed by "organization of all types of ownership from the Moscow region, on a competitive basis".

To perform the Sub-Programme "Relocating residents form Shabby and Dangerous-to-Use Housing Stock", the Law of the Moscow Region "On the Budget of the Moscow Region in 2008" provided for governmental guarantees to credit organizations for the amount of 750 million Rubles.

On 16th July 2008 the Law of the Moscow Region "On the Budget of the Moscow Region in 2008" was amended so that the governmental guarantees could be not enjoyed by any organization involved in performing the sub-programme on a competitive basis, but only the "Moscow Regional Mortgage Corporation" OJSC ("IKMO" OJSC). "We would like to understand why the deputies of the Moscow Regional Duma made this decision and why this company was granted governmental guarantees for 750 million Rubles", informed Alexander Kinyov, the Head of the FAS Russia's Anti-Cartel Department.

FAS Russia plans to bring to the proceedings the Government of the Moscow region as the interested party because the Government of the Moscow region introduced the draft law to the Moscow Regional Duma.

The same day FAS Russia initiated another case for violating Article 15 of the Federal Law "On Protection of Competition" (prohibition of competition-restrictive agreements and concerted actions between the authorities and economic entities) to which "IKMO" OJSC is already a defender. The Federal Antimonopoly Service sees the sings of collusion between "IKMO" OJSC and the Town Authority in Sergiev Posad on providing constriction sites.

"Inspecting the work of "IKMO" OJSC, we discovered that from October 2007 to July 2008 this organization won more than thirty auctions in various municipalities ion the Moscow region and for very small money was granted the rights for dozens of hectares of towns' territory", - said Alexander Kinyov.

Sergiev Posad is one of the typical examples: several months before the auctions for the right to develop the build-up areas, "IKMO" OJSC and the town authorities issued some document to the residents of shabby houses located in those areas. The document was titled a "Certificate" and was singed by the General Director of "IKMO" OJSC and the Head of the Town Authority.

According to the Head of the FAS Russia's Department, the "certificate" indicated even the area and the address of the new flat. "We would like to check whether the auctions, when the winner was known in advance, were organized in compliance with the law. Especially, because according to the information available to us "IKMO" OJSC is not in a hurry to fulfill its obligations to municipalities or the residents of the Moscow region who believed the promised given by the managements of this corporation and those officials who backed them", stated Mr Kinyov.

FAS Russia will continue inspecting the work of the "Moscow Regional Mortgage Corporation" OJSC in municipalities in the Moscow region.