OREANDA-NEWS. In the middle of May, the Federal Antimonopoly service (FAS Russia) found that the Moscow Government violated Part 1 Article 15 of the Federal Law "On Protection of Competition" as it failed to organize open tenders for selecting managing companies in Moscow within the period designated in accordance with the current legislation of the Russian Federation. This can lead to restricting competition on the market of services for managing apartment blocks, reported the press-centre of FAS Russia.

FAS Russia also found that antimonopoly legislation was violated by the executive officers of the Moscow Department of Housing and Utilities, and Amenities. In particular, FAS Russia established that departmental officials had petitioned to the Prefect of the North Administrative District and the Head of the Department of Housing Policy and Housing Stock of the Central Administrative District, asking their assistance for engaging "MiSAT" State Unitary Enterprise in the works for collecting and removing solid waste and for recommending "Zhilischnik-1" as a managing company. Such actions are in breach of Part1 Article 15 of the Federal Law "On Protection of Competition.

The case against the Moscow Government was initiated upon inspecting whether the Moscow Department of Housing and Utilities, and Amenities observed the antimonopoly legislation.

According to the general information on selecting the methods of management over apartment blocks in Moscow, presented by the Department, as of 4th June 2008, 1197 apartment blocks did not implement the type of management. Those 1197 apartment blocks included 30 apartment blocks, which had selected but not yet implemented the type of management.

Also according to the information on selecting the methods of management over apartment blocks in Moscow, presented by the Department for the same period with breakdown by city districts, 25 apartment blocks did not select the method of management and therefore the city must organize open tenders for selecting the managing companies for those apartment blocks.

Under Part 1 Article 18 of No.189 Federal Law ФЗ "On Enacting the Housing Code of the Russian Federation", if by 1st January 2007 the owners of the premises in an apartment block did not chose the method of managements of the apartment block or if the decision, made by such owners on selecting the type of management had not been implemented, by 1st May 2008 a local self-government, in accord with Article 161 of the Housing Code of the Russian Federation, shall organize an open tender for selecting a managing company.

Therefore, such open tenders for selecting the type of managing company also should have been organized for 55 apartment blocks in Moscow that did not select or implement the selected type of management.

Under Clause 2 of the decree of the Government of the Russian Federation of 6th February 2006, "On the Procedures for Organizing an open tender by a Local-Self-Government Body on Selecting a Managing Company for Managing an Apartment Block", from 1st January 2007 in accord with the regulations, approved by the decree, the local self-government bodies and the authorities of Moscow and St Petersburg as the cities of federal importance shall organize open tenders for selecting managing companies to manage apartment blocks, if the owners of the premises in those apartment block did not chose the method of managements of the apartment block or if the decision, made by such owners on selecting the type of management had not been implemented in the cases provided for in the Housing Code of the Russian Federation.

The FAS Russia's Commission concluded that the Moscow Government had failed to organize open tenders for selecting managing companies for apartment blocks.

Based on its decision, the Antimonopoly Service will issue a determination to the Moscow Government with a request to organize open tenders for selecting managing companies. The Moscow Department of Housing and Utilities, and Amenities will be issued a determination to restore competitive conditions.