OREANDA-NEWS. December 22, 2009. The Arbitration Court of the Republic of Dagestan allowed the claim of the Office of the Federal Antimonopoly Service in the Republic of Dagestan (the Dagestan OFAS Russia) on adjudicating illegal the Decree of the Government of the Dagestan Republic on assigning the functions of a unified gas-distributing organization for the facilities of the gas-distribution system, built at the expense of the Republic of Dagestan, to "Spetsgazstroiservice" Public Utility Company, reported the press-centre of FAS Russia.

Exercising control over compliance with the antimonopoly legislation, the Dagestan OFAS Russia discovered the Decree of the Government of the Republic of Dagestan, which assigned the functions of a unified gas-distributing organization for the facilities of the gas-distribution system, built using the budgetary funds of the Republic, to a budget-supported enterprise - "Spetsgazstroiservice" Public Utility Company. The company was selected by the Government without public procedures, which violated Article 15 of the Federal Law "On Protection of Competition" (prohibiting competition-restricting acts and actions of the authorities).

The Dagestan OFAS Russia suggested to the Government of the Republic of Dagestan to eliminate the violations but, as no response was received, filed a lawsuit to the Arbitration Court of the Republic of Dagestan on adjudicating the decree illegal.

"This is not the first incident when the Government of the Republic of Dagestan, as a public authority, passes the acts that are in breach of the antimonopoly legislation", said the Head of the Dagestan OFAS Russia Kurban Kubasaev.

Mr. Kubasaev reminded that in the last 18 months the Arbitration Courts allowed the claims of the Dagestan OFAS Russia on invalidating the acts passed by the Government of the Republic of Dagestan in three incidents. "We will continue suppressing such violations in the future. However, we would most like it if the Government of the Republic of Dagestan, as well as executive bodies of the Republic, acknowledge the importance of compliance with the antimonopoly law without our help", added Mr. Kubasaev.