MOSCOW, January 17 (Itar-Tass) — Russia’s Deputy Prime Minister Dmitry Rogozin said on Tuesday he would oblige top managers of defence-related enterprises to declare incomes, as was done by the prime minister in respect of energy sector companies.
“I have drafted an instruction to bind individuals who manage defence-related enterprises to declare their incomes,” Rogozin said at a government meeting on measures to control funds allocated under Russia’s state arms program for 2011-2020. “It follows the one issued by Prime Minister Vladimir Putin in respect of managers of energy companies.”
He urged for steps to “trace a chain of real owners of each of the defence-sector companies,” since the ownership scheme is not clear in many cases.
Rogozin also said that he had signed a request to the Russian Academy of Sciences and the Higher School of Economics to elaborate schemes of calculating the cost of defence-related products. It is likewise necessary, in his words, to clarify methods of pricing. “Defence companies are to earn enough to pay wages and to fund modernization of production lines,” he stressed and added that the current profitability of key defence companies ranges from five to eight percent, whereas companies in allied industries show profitability of 3o percent or even more.
The deputy prime minister also touched on reports about embezzlement of funds and systemic breaches in placing the state defence order. “According to the Audit Chamber, budgetary funds are not being used efficiently enough,” he noted. “There are violations. Along with reported cases of blatant misappropriation of funds, there are systemic errors in placing the state defence order.”
According to Rogozin, bearing in mind the big funds to be allocated under the state arms program till the year 2020, or more than 20 trillion roubles, it is a must to tighten control over the use of “colossal budgetary funds the Motherland is depriving itself of.”