As a result of audit of Saint-Petersburg affiliate of “Rosmorport” Audit Chamber of the Russian Federation elicited violations of the legislation.

In accordance with the plan of 2007 Audit Chamber of the Russian Federation inspected Saint-Petersburg affiliate of “Rosmorport” and “Administration of sea port of Saint-Petersburg”.

According to the press-service of Audit Chamber, the business activity of these enterprises was unprofitable from 2005 till 2006.

For example, in 2006 key performance parameters of the port of Saint-Petersburg significantly decreased in comparison with the period before 2006 when continuous growth of key parameters took place. In particular the volume of turnover decreased by 5.7%, amount of the vessels handled decreased by 11.2% and number of passenger liner calls decreased by 21%.

Financial results of the affiliate of “Rosmorport” also tended towards deterioration. While in 2005 the realized profit amounted to 367 thousand rubles, in 2006 the loss amounted to almost 7 thousand rubles. Main reason for the loss situation in the affiliate is the decrease of the incomes in comparison with 2005 (by 7.7%) together with the concurrent growth of the expenses (by 10.6%).

One of the reasons of the decrease of the affiliate incomes was also the decrease of the intakes from the port dues including the piloting charges (by 38.7%), due to the reduction of the rendered piloting services in the port of Saint-Petersburg and suspension of providing these services in the port of Primorsk.

Besides, the audit revealed that the key assets of “Administration of sea port of Saint-Petersburg” and the berths of the affiliate of “Rosmorport” are badly battered and degree of wear amounts to more than 70% and from 57.6 to 100% accordingly. The degree of wear keeps growing.

In the course of these control measures it was discovered that “MAP of S-Petersburg”, “AMP of Saint-Petersburg” and “Rosmorport” committed several violations of the current legislation while entering lease agreements for the federal property. Federal property was leased without the owner’s approval (Minproperty, Rosproperty), tenders for choosing lessee weren’t carried out, concluded lease agreements were not registered by the state.

The market value of the leased federal property in most cases wasn’t evaluated, so as a result the lease payments were significantly undervalued.

According to the audit inspection, “Rosmorport” wasn’t providing the necessary control over the performance of the lease agreements, correctness of rent calculations, completeness and timeliness transfer of payments to budget from the side of “MAP of Saint-Petersburg”.

During the meeting of the Board it was established that the financing procedure of the activity of administrations of sea ports wasn’t determined; legal framework regulating the functioning of the sea ports wasn’t fully set up, Federal law “On sea ports” wasn’t approved.

The Board took decision to submit adductions to Transport Ministry of Russia, Rosmorrechflot, Russian property Service, Federal Revenue Service and “Rosmorport”, application to General Prosecutor’s Office. The report on the audit results is submitted to the chambers of the Federal Assembly of Russian Federation and to the Federal Security Service of Russia.

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