Hrodna Governor Casts a Stone at Lukashenka

OAO Mostovdrev with modernization of about $180 million is loss-making. Who is to blame?

The enterprise is on the verge of bankruptcy. The enterprise has got credits to pay salaries, while its production is not in demand. The Development Bank has been appointed an official receiver, Radio Racyja reports.

Uladzimir Kurtsou, chairperson of Hrodna oblispolkom, has recently stated:

- We have faced problems. The enterprise uses only 50% of its total capacity. It has caused problems with employees, wages, financial state. Those people who have a good command of business should run it.

The governor did not mention those who had brought eggs to a fair market. But it is fair to assume that this is the Mostovdrev's management, gazetaby.com notes.

The mistake is really impressing. According to official data, the state invested €182 million for modernization in 2008-2015.

It is expected that the enterprise should be profitable then. But it is wrong: In the third quarter last year the dead-weight loss equaled to Br27 billion.

But, wait. Who did allow such sum of money to the management that turned to be incompetent?

The story begins in 2007, when Lukashenka criticized the work of the government on the exports of woods and tried to explain, according to him, the way it should be changed. Then followed Decree No. 529 "On Some Measures on Wood Industry Development", which also provided the modernization of the Mostovdrev.

Nothing is known about whether the managing staff from Masty asked the ruler to do it. Moreover, when reading current news about Mostovdrev, it may seem that the administration has yelled for an immediate modernization without any thought of its adequacy.

For example, in 2012 the State Control Committee performed a tough critics: the inaction of officials at Bellesbumprom concern and the leadership of OAO Mostovdrev led to disruption of investment projects at the enterprise.

The modernization was accomplished, but the enterprise was back at the bottom of the ladder. Why?

In the end of the last year the founder of HolzInTech Mikhail Shangin explained naviny.by, speaking about the Belarusian woodworking industry:

"Sales area is the most urgent issue. They have not been properly developed. If we talk about factories for production of chipboard and MDF, which were modernized in Belarus, then this process coincided with the construction of a large number of factories in Russia. And the West had a lot of free capacity.

In this regard, the words of Chairman of Hrodna regional Executive Committee Uladzimir Krautsou ("Those people who have a good command of business should run it ") are an indirect rebuke to Lukashenka, who apparently decided a decade ago that he had a talent of a prominent businessman.