Russian Post CEO says prosecutors’ claims baffling

MOSCOW, Nov 28 (PRIME) -- The claims of the Prosecutor General’s Office against General Director of Russian Post Dmitry Strashnov on an allegedly illegal payment of a 95.4 million ruble bonus are baffling as the payment is done in accordance with regulations of the government and the Labor Ministry, Strashnov told PRIME late on November 25.

The prosecutor office wants to launch a criminal case against Strashnov and two directors of the communications ministry’s departments because of the payment of the allegedly illegal bonus for 2014. Prosecutors revealed the alleged misconduct during a check of compliance with the law by the Communications and Mass Media Ministry and the entities it controls.

“First, it is not me who awards me with a bonus. And then there is a set method to calculate bonuses for all heads of state companies. In fact, it is defined by the regulation of the government and the labor ministry, it contains the method and the formula. So there is zero possibility to influence the calculation either from the (communications) ministry…or from any other authorities,” Strashnov said.

The prosecutor’s office also said that the bonus was calculated on the basis of a Russian Post 1.2 billion ruble net profit in 2014, but it was attained only thanks to a 5.4 billion ruble budget subsidy. Strashnov said that the assumption was incorrect as the post used the subsidy to compensate losses in income incurred due to the social function of restraining tariffs for distribution of printed press and operations in the Far North.

“The fact that colleagues interpret the subsidy as a necessary subtraction from profit is incorrect. The legislation stipulates that all non-operating income, including subsidies, is calculated as part of the net profit. The fact that the company was allegedly a loss-making is nonsense,” Strashnov said.

He also said he sees no reason to reject the bonus, as it was awarded by the state, and if the government orders to return the money – it will be a bad sign for the market. “Because we have rules and we have law, and if we waive the law – it may be not the right thing to do,” he said.

He is ready to work with prosecutors and is ready to make any necessary clarifications, but has not yet met with them, he said.

A representative for Russian Post said the company is ready to provide any necessary documents to the prosecutors.

Yekaterina Osadchaya, a spokeswoman for the Communications and Mass Media Ministry, said that the ministry is to provide all documents regarding Strashnov until December 12.

She confirmed that the 2014 subsidies did not have an impact on the company’s income and were directly spent on distribution of printed media.

Previously, a representative of the ministry and Russian Post said that the company received a 3.138 billion ruble subsidy in the year, and it only covered part of the company’s costs. The company had been receiving subsidies until the middle of 2014, when they stopped.

A source close to the ministry told PRIME that the situation around Strashnov may be connected to external pressure on the company because of plans to convert Russian Post into a joint stock company and to the company’s fight with a so-called grey post, which deprives state coffers of money.

“If the autumn or spring session of parliament approves a law to convert the company into a joint stock firm, the company will be converted in a year or a year and a half, the door for all the dishonest elements will be closed. The closer we get to the date, the more pressure on the company will be exerted,” the source said.

(64.6174 rubles – U.S. $1)

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