The Homiel Regional Executive Committee has reclaimed a state-owned shareholding in a retail property from an investor to whom it was sold 20 years ago. The State Control Committee (KGC) announced the move, saying the decision was made following an audit by state inspectors.
According to the KGC, the purchaser of the share package failed to fulfill the conditions attached to the transaction. The securities were sold on the condition that jobs would be preserved for 10 years (until 2017) and that investments in the technical modernization and reconstruction of the shopping center, including the addition of extra floors, would be made no later than 2010.
The investor did not fully comply with the obligations, the KGC said. In particular, the reconstruction of basement premises into retail space and the construction of additional floors were not carried out. Staffing levels at the retail facility were also reduced.
“Based on materials from the KGC inspection, the Homiel Regional Executive Committee took measures to terminate the share purchase agreement through the courts. The state-owned stake, valued at more than 330,000 rubles, has been returned in full to the ownership of Homiel Region,” the committee said.