Report of Chairman of State Control Committee Vasily Gerasimov

Belarus President Aleksandr Lukashenko heard out a report of Chairman of the State Control Committee Vasily Gerasimov on 1 March.

The President asked the chairman of the State Control Committee about the last year’s  performance and the bottlenecks to be addressed. “The most important things you need to assess are the budget and state property. These are the main areas of your work. What is your take on them? In addition to the main areas of work, the committee traditionally deals with many other issues, including control over the payment of salaries. You also keep an eye on taxation. The financial police also report to you. How does it work? What do we need to improve here?” the head of state said.

“Another matter we need to seriously deal with (we raised it at the Belarusian People’s Congress) is intermediation. Intermediaries add up to 30% to the final price, the figure can be even higher for certain products. We don't need such intermediation. We should eliminate any intermediation inside Belarus. Does it make any sense: I buy goods from across the street, and I still need some kind of intermediary? No intermediaries are needed. An appropriate proposal must be submitted,” the Belarusian leader said.

“They come and tell me: they [intermediaries] give payment deferrals or something else, and we go to them. We need to come to grips with this matter and eliminate unnecessary intermediation,” the head of state said. Aleksandr Lukashenko noted that the State Control Committee deals with a lot of things that have to do with the real sector of the economy. “There is no escaping it, either. You should see how the real sector of the economy functions. It should be in good order” the Belarusian leader demanded.

Aleksandr Lukashenko suggested introducing responsibility for those who accept salaries in envelopes. “We cannot do without you in this matter. We must stop such things happening in Belarus. I would not say that the envelope wage practices are wide-spread in our country, but we have such cases. Even individual entrepreneurs, businessmen approach me and complain that while they pay their workers according to the law, others do not. They even name companies,” said the President.

He suggested introducing the responsibility for those who accept wages in envelopes.

“They will stop accepting such wages. If they stop taking them, there will be less desire to pay [in envelopes]. That is why it is necessary to put everyone in equal conditions. It is quite normal,” said the head of state.

He emphasized that non-payment of taxes is subject to severe punishment in any country. “That is why we will not succeed in the matter without you. Financial Police has begun working in this area. I would like this work to be continued. I think our people, especially businessmen, will understand that such things cannot be done here. Otherwise they will lose their property. They will not get away with fines only. We have to introduce serious responsibility. The first time you are caught, you pay a fine. Then you lose your property. We do not need businessmen who do not pay taxes,” the President said.

The head of state recalled the government's decision to curb unreasonable price increases, in particular, with regard to medicines. After the increase of VAT to 10%, pharmacies began to raise prices. "Some of them have increased them by 30%," Vasily Gerasimov said.

“This shows that we need to stop dishonest business practices in the toughest way," the Belarusian leader stressed. "We have to watch both wholesalers and retail. But the most important thing is medicines. We must not allow dishonest businessmen to prey on people's troubles. No one of them contributed a kopeck to the COVID response. No one. It was just the state. The country has spent already a billion dollars from all sources on this. Have pharmacies donated some money? No, they have not."

"Well, 50% of pharmacies in Belarus are state-owned, 50% are privately held. If we do not bring business back to their senses, well, then it will be only state-owned pharmacies that will be working here. We cannot afford them to profit on people's health. Therefore, medicines are under special control," the head of state said.

The head of state believes that the government should pay attention not only to prices for staple goods. “We should keep track of all prices. We have taken just some 60 products under control. For example, we are regulating prices for milk, meanwhile prices for vegetable oil are free to grow as fast as they can,” the President said. “Don't our people buy vegetable oil? We should also pay attention to prices for other products. We need a comprehensive pricing policy to prevent a deficit and to show people that there is no unreasonable price growth,” he added. 

“People understand everything well. Every Belarusian knows what prices and pricing are. This is why we should deal with this matter in a reasonable manner, without excesses,” Aleksandr Lukashenko noted.

According to him, the State Control Committee is not meant to spearhead this work, but to join efforts with trade unions, MPs, and the Ministry of Antitrust Regulation and Trade. “You should play your part, analyzing the situation and proposing the necessary steps in the field of pricing,” Aleksandr Lukashenko said.

At the meeting the head of state also asked about the state of affairs in Brest Oblast, which he is responsible for as the President’s Aide - Inspector for Brest Oblast.

"You are the President’s Aide - Inspector for Brest Oblast. You are familiar with the state of affairs in the region. I'd like you to say a few words on your work there. In general, how do you, as a president’s aide, assess the work of the new governor [Yuri Shuleiko] and the performance of Brest Oblast in general?" the head of state asked.

According to him, he plans to visit Brest Oblast as part of his upcoming regional trips. "I plan to pay most serious attention to Brest Oblast. After Grodno I will go to Brest Oblast. I want you to analyze things there and report to me on the main shortcomings and maybe on the reserves that we can tap into as I visit the region," Aleksandr Lukashenko said.