Kiev is managing land ineffectively
On September 1, 2009 Main Control and Revision Office of Ukraine (MCROU) published a report on results of audit of the budget of the city of Kiev in 2007-2008. The check was initiated by the Cabinet of Ministers of Ukraine.
The audit revealed weak budget fulfillment. That was caused first of all by poor management, in particular, in the field of land and real property administration. Under “poor management” MCROU counts reduced rent rates for land and buildings as well as sale of municipal property with huge discounts.
The total losses of the budget of the city of Kiev in 2007-2008 amounted to UAH 3.8 billion (USD 475 million by current rate).
MCROU pointed out at clear disproportion between sale and gratuitous privatization of land in Kiev where land prices are the highest in Ukraine. For example, in 2007-2008 city sold 135 land parcels with the total area of 233.4 ha. During the same period city allocated on free-of-charge basis more than 2,5 thousand ha. The said 233.4 ha were sold at price which was remarkably lower than current average market price, and that caused losses of about UAH 2.1 billion.
Procedures related to conclusion and registration of land lease contracts take in Kiev 2-23 months from the moment when the city council takes decision on allocation of land into lease.
MCROU concluded that these and other drawbacks in management prevented complete fulfillment of the budget and effective social and economic development of the capital of Ukraine.
Complete text in Ukraine is available here. Translation of selected extracts is done by MYland, 2009Back to list >>
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