Authorities of Dagestan began to liquidate unprofitable state unitary enterprises

The press service of the government of Dagestan reports that a campaign to reorganize and liquidate all the state-owned enterprises that show unprofitableness has begun in the republic.  The corresponding order was announced on September 22 by Abdulpakh Amirkhanov, who heads the government of Dagestan.

During the meeting, the Prime Minister instructed officials to reorganize those unitary enterprises that are not engaged in statutory activities or function ineffectively.

Speaking at the government meeting, Minister Zaur Eminov, who is responsible for regulating land and property relations in the republic, announced the data on the number of state unitary enterprises owned by Dagestan.  It turned out that out of 45 enterprises, only 23 legal entities operate, and the rest of them either go bankrupt (8 SUEs), are liquidated (11 SUEs), or simply do not operate (3 enterprises).

Profit for 2020 was shown only by 13 legal entities.

According to the minister, regular annual inspections carried out by the regulatory authorities demonstrate that a significant part of state unitary enterprises commit violations of the law related to the misuse of land and real estate.  Moreover, by the beginning of 2021, more than 54 hectares of land were assigned to the state-owned enterprises of Dagestan.

As measures aimed at solving the problem, officials plan to start an advanced training of the management of state unitary enterprises and certification of their leaders.  It is assumed that at the second stage of certification, the ministry will assess the effectiveness of the measures that directors of enterprises have implemented over the past three years of their work.

Along with the work with personnel, the authorities of Dagestan set their sights on the privatization of some companies.

Some of the enterprises will acquire the status of LLC with 100% state participation in the capital of the company.  This will give the management of the emerging firms the opportunity to sublease land plots, receiving additional income from transactions.  However, so far, privatization is being held back by the incomplete registration of all real estate objects owned by the state unitary enterprises at present.