Although it had targeted positive results, the authority widened its loss, according to the institution’s revised budget for this year, which the government approved earlier this week.
In February, RA-APPS optimistically announced it targeted revenues of RON190 million from the sale of state assets, nearly the same target it had an missed the year before, the revised budget shows the institution only managed to raise RON75.8 million, nearly three times lower than planned.
On the other hand, the institution spent RON50 million on salaries, including bonuses for managers, and assigned RON26.3 million for representation and protocol actions, RON11.2 million more than it spent last year.
RA-APPS will end the year with a loss of RON57.2 million, despite its announcements that it would turn a profit this year.
At the end of last year, the authority was forced to drastically lower its revenue estimates. This year, it started sale procedures at prices 30% lower, despite real estate experts’ advice to either set up a real estate fund and list it on the stock market or use the services of private realtors.
The cut in revenue estimates in 2013 was the second after a similar move in 2012, when the authority failed to attract buyers for its assets.
In 2013, RA-APPS estimated to raise RON193.5 million but ultimately only raised RON42 million from asset sales and incurred a loss of RON65 million, nearly double from 2012, even though it planned to switch to profit.
In 2012, the authority had estimated to raise RON706 million but later revised the target to a much lower RON296.2 million. Even so, the institution only managed to sell 16 properties out of a planned 103, raising revenues of just RON39.3 million and incurring a loss of nearly RON38 million.
RA-APPS, which employs over 2,170 people with monthly average salaries exceeding RON1,900, is in charge of around 650 government residences and offices, more than 75 villas and over 250 hectares of land, inherited from the former state apparatus of the Communist Party and now occupied by current or former dignitaries, or even their relatives.
According to official sources, the assets managed by RA-APPS are worth EUR0.5 billion – 1 billion.