OREANDA-NEWS. August 16, 2011. The Moldovan Railway Company (CFM) inflicts losses to the state, since the CFM has been bringing profit to private intermediaries for several years, according to a conclusion made by the Chamber of Auditors, pointing at some infringements at the CFM, lack of transparency in the public acquisitions, suspicious contracts for purchasing spare parts and an uncompetitive tariff policy.

While unveiling the CFM audit report, the chairman of the Chamber of Auditors, Serafim Urechean, said that the document shows only a part of the legislative derogations at the enterprise, which is being managed under a "vicious system", because of the current managerial crisis and poor responsibility both at the institutional and staff levels.

Thus, the auditors discovered that the wagons have been illegally leased and that local tariffs which inflict losses to the state are applied for the international shipping of goods, including on the Cahul-Giurgiulesti railway segment. Also, the employees of the Chamber of Auditors discovered that only a half of the enterprise's patrimony and the tenth part of the adherent areas are kept on record. Over 1,100 buildings and about 10,000 hectares of land, managed by the CFM, have no property certificates so far. "According to our data, the son of the former director of the enterprise, Miron Gagauz, has been managing a wagon business", Urechean said.

In 2009, losses worth 163 million lei were recorded from the passengers' transport, while the incomes from the goods' shipping were estimated at 131 million lei.

Deputy Transport and Road Infrastructure Minister Valeriu Ciubuc said that in 2011, about 7,000 out of 10,000 hectares of land are to be registered by the cadastre services, and that the unused social buildings and dwellings managed by the CFM are to be passed under the balance sheet of the local public administrations. Also, the spending for fuel consumption will be cut by 30-40 per cent, while the tickets' prices for internal trips might increase by 30-40 per cent, the state being unable to provide facilities for the railway transport. At the same time, all the documents regarding the accession of the Giurgiulesti International Port to the International Register of Shipping are to be completed by late 2011.

The report unveiled by the Chamber of Auditors is to be submitted to the Prosecutor's Office, to the Centre for Combating Economic Crimes and Corruption and to the Main State Fiscal Inspectorate.