Supervisory Authorities Switch from System of Penalties to Preventive Control

13 october 2017

On October 11, a seminar devoted to the issues of introduction of the Standard for Integrated Preventive Control of Violations of Statutory Requirements was held at the Analytical Center. The document was prepared by the Ministry of Economic Development of the Russian Federation within the framework of the reform of control and supervisory activities.

The standard was approved in September by the Project Committee for the reform of control and supervisory activities. The document identifies key principles of the reform: the switch from penalties for violations to prevention and specific measures to abandon the discipline of the rod. The purpose of the Standard is to collect disorganized requirements in one place and make them illustrative. The document also provides for public access to checklists, consultations for entrepreneurs and conducting publicly-held "balance" activities, encouraging honest entrepreneurs, introduction of pretrial dispute settlement and use of public monitoring tools to control the effectiveness of supervisory authorities. The supervisory authorities are encouraged to identify the deputy heads responsible for prevention and to amend the relevant documents.

Mikhail Pryadilnikov, Deputy Head of the Analytical Center demonstrated a video presentation of the Standard containing the main document provisions prepared by the Analytical Center to the seminar participants.

Mikhail Abyzov, the Minister of the Russian Federation thinks that the best prevention practices of supervisory authorities must be published in the web portal of the reform of control and supervisory activities. "This resource should be the basis for better prevention practices. The supervisory authorities should be obliged to collect 5-7 best practices from their regional authorities and upload them to the web site. This will motivate other supervisory authorities," Abyzov said.

According to Olga Atyukova, Deputy Presidential Plenipotentiary Envoy to the Central Federal District, this document would be of great benefit only if supervisory officials used it in their work with entrepreneurs every day.

Anton Lebedev, Deputy Head of the Department of the Ministry of Economic Development of the Russian Federation thinks that the Standard would allow to change not only the  work of control and supervisory authorities, but also the relation of business to them. "It is important to demonstrate that the state's purpose is not to knock with a bludgeon but to prevent a violation," the expert said. "Pretrial settlements and warnings are the most important results of the reform." Alexey Pukhov, Head of the Department for Supervision over the Observance of Entrepreneurs' Rights of the General Prosecutor's Office added that all supervisory authorities must develop their programs of introduction of preventive measures on the basis of the Standard.

"We have state regulations that do not regulate," Sergei Dankvert, Head of Rosselkhoznadzor believes. "There are many cases where punishment for violation is minimal and losses are disproportionately high." The expert suggested analyzing the effectiveness of the Regulatory Control Assessment procedure, which may be used as a tool of corruption and lobbying.

The seminar was attended by heads of federal supervisory authorities, about 90 heads of regional authorities of the Central Federal District and more than 300 representatives from other Russian regions, online.