There is an absolute crisis in the administering of the monetization of subsidies, – Aliona Babak

The program for the monetization of subsidies at the level of enterprises of housing and utility services has begun operating since January 1, 2018. As noted by Samopomich MP Aliona Babak at a meeting of the Cabinet of Ministers, it is very good that the government has begun a movement towards the monetization of subsidies, but there is an absolute crisis in the administering of the program.

Consequently, the MP has appealed to Prime Minister Volodymyr Hroisman asking to take personal control over the repayment of the state debt under the housing subsidy program.

“Today, such debts amount to more than 22 billion hryvnias,” Aliona Babak explains. “They accumulate for at least three months, so the enterprises, which do not receive the compensations on time, continue to accumulate debts in the form of fines, forfeits, and various penalties,” the MP states.

Secondly, Aliona Babak urges the government to introduce amendments to its own resolution and the order of the Ministry of Finance – which partially caused this crisis – as soon as at the next meeting in a week.

“Why are these amendments necessary? According to the resolution of the Cabinet of Ministers, condominiums and housing cooperatives have dropped out of the process altogether. How are they supposed to be receiving the debts on subsidies from the past? What will happen to the people who live in the condominiums and housing cooperatives and who are the recipients of subsidies? How are they supposed to get the compensations today?

I am drawing your attention to the fact that condominiums and housing cooperatives do not want to perform the function of administrators of the housing subsidy program; however, the monetization at the level of household enterprises is urgently needed.

In addition to this, the order of the Ministry of Finance has an innovation that literally caused a collapse in the management of housing, removal of domestic waste. This is a restriction on the use of subsidies. That is, in fact, these funds can be only used for the payment of gas and electricity bills, wages, and taxes. However, today, a large number of works are carried out by contractors. This is not taken into account. Similarly, water service companies and heating companies cannot receive subsidies properly. Therefore, we are asking to prepare the changes and immediately adopt them at the next meeting in order to unblock the calculations,” says Aliona Babak.

Thirdly, the people’s deputy calls to first test and only then officially introduce two applications of the Ministry of Finance, which practically cannot operate today because of the existing state’s debts and the lack of some data. Therefore, neither the resolution nor the order is working today.

“Today these things are not working at all. Therefore, they should be first tested at least at two enterprises, and only then they should come into force,” notes Aliona Babak.

Alona Babak
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