The General Prosecutor’s office found many violations in the work of the Corporation’s business development

MOSCOW, March 16. Russian Prosecutor General’s office revealed numerous violations in the activities of the former management of Federal Corporation for the development of small and medium enterprises.

As reported by the official representative of the Prosecutor General Aleksandr Kurennoy, “the audit revealed numerous violations of legislation in the sphere of support of subjects of small and average business, purchasing, as well as instances of improper corporate governance”.

As determined by the inspection in the authorized capital of JSC “Agency credit guarantees” (the former name of the company) from the Federal budget in late July 2014, made 50 billion rubles. However, the targeted results to provide guarantees for lending to promising small and medium business, including in the sphere of development of innovative technologies, has not been achieved.

Former management of the Corporation failed to ensure the implementation of a number of tasks on support of small and medium businesses. In particular, in some cases, not carried out the planned performance of the society. In 2014 were issued guarantees for lending to entrepreneurs for a total amount of 1.43 billion rubles, which amounted to only 3% of the planned amount of issue. For the first nine months 2015 the volume of issued guarantees amounted to $ 15,11 billion rubles, that is, only 23% of the planned amount.

“The procedure of granting of guarantees did not conform to the principles of transparency of procedures for provision of support to small and medium businesses. The company’s activities are largely carried out exclusively through the partner banks. In this case, all the guarantees were issued without the right of review, which denied the Corporation the ability to affect the banks, the lending business”, – said the representative of the Prosecutor General.

JSC “Agency credit guarantees” in fact, did not take measures to support innovative entrepreneurs. In addition, the structure did not control the financial status of commercial companies – the recipients of guarantees, collateral, and compliance with the conditions of issue of guarantees.

Warranty under the sale of alcohol

The cost of the guarantee Corporation, increasing the ultimate cost of credit to the business entity by 1.25% per annum, remains constant and is not differentiated depending on the availability of credit. “There are cases of providing guarantees for the loans with substantial rate – 26% per annum excluding the cost of guarantees and issuance of guarantees the organization implementing alcoholic beverages, which is expressly prohibited by law,” said kurinniy.

The Corporation failed to create a system of cheap loans to business

“Assigned to the Agency the tasks of the National guarantee system – a unified system of organizations, guaranteeing the provision of cheap credits for business in 2014-2015 have not been resolved. Numerous violations are found in the implementation of company procurement information systems and other products for their own needs. If in 2014, with the only suppliers concluded 89% of the total number of treaties, in the first nine months of 2015 of such contracts was already 96%. In this study the procurement from a single supplier were often not provided, information about orders in the Unified information system of procurement has not been offered,” said kurinniy.

The results of the audit in JSC “Federal Corporation for development of small and medium enterprises,” the state office of public Prosecutor has brought representation about elimination of the revealed violations of the law. It is considered, and the Corporation is already taking steps to address these violations.