Tajik economist, Professor Nouriddin Qayumov, says tolling is a “prehistoric method” to launder money and the Tajik Aluminum Company (TALCO) must abandon it.
Professor Qayumov absolutely agrees with the findings of the report by the Ministry of Finance (MoF) on TALCO’s activities in 2010-2015 and the first half of 2016.
“By producing aluminum with use of so-called goods made on commission, certain persons launder money through offshore zone,” said Qayumov. “In a word, this system is a loophole to rob the [aluminum] smelter.”
The expert stressed that under the conditions of market economy an enterprise is able to provide itself with raw materials, produce and sell its output without any intermediaries. “This is the most beneficial system under the condition of market economy,” Qayumov said.
“The most important thing for production of aluminum is access to cheap electric power and TALCO receives electricity at the lowest rates,” he added.
TALCO now pays 7.20 dirams for one kWh of electricity in May-September and 11.80 dirams in October-April.
Recall that the report by a MoF on TALCO’s activities in 2010-2015 and the first half of 2016, in particular, says that in connection with being shifted to the tolling system, TACO has been faced with unfavorable financial situation and the company is currently losing US$100.00 from production of each ton of the tolling aluminum.
According to the report, the shift to the tolling system has led to inefficient expenses, non-transparent financial accountability, increase in productive and nonproductive expenses, rise in receivables and payables.
TALCO’s main tolling partner, TALCO Management Ltd (TML), reportedly receives 500.00 U.S. dollars from production of one ton of primary aluminum while TALCO’s loss from production of one ton of primary aluminum now amounts to 100.00 U.S. dollars.
Meanwhile, TALCO representatives consider that the tolling system has helped preserve the aluminum smelter.
According to them, the pervious company management had been working on the basis of exchange of goods by barter that had led to a US$536 million debt. “Besides, the off-balance-sheet debt had exceeded 120 million U.S. dollars,” said TALCO representatives. “In those years, it had been a question of starting the bankruptcy process and closing down the enterprise.”
