Taking part in the discussion were representatives of the Ministry of Culture and Tourism of Ukraine, Ministry of Finance, State Agency for Cinematography of Ukraine, and Ukraine´s Chamber of Audit.
Committee members noted that the system of planning and using State Budget funds, allocated towards production and distribution of National Films, as used by the Ministry of Culture and Tourism, is ‘non-transparent, uncontrolled, and inefficient, and has not provided execution of the Government Contract´.
It was also emphasized that the Ministry has failed to create a mechanism for enforcement of the Law, ‘On the National Programme for Development of the Film Industry in 2003/7´, and has spent funds allocated from the State Budget towards the production and distribution of National Films inefficiently, and with infringements of the current legislation.
Those present at the meeting pointed out that ‘the failure by the Ministry of Culture and Tourism to produce effective management decisions resulted in thirty-six (43.4%) films - of a total of 83 films produced to the Government Contract in 2005/7 - costing UAH 11,985,600, having never been seen by a single spectator. Thus, the goal set by the National Programme for the Development of the Film Industry, i.e. improving the appeal of National Cinematography to attract the public, has not been achieved.
Systematic violations of legal enactments by this Ministry, and insufficient internal controls, have led to the spending, with violations, of UAH 45,400,000 of State Budget funds.
This means that every alternate Hryvnia has been spent with Budget infringements.
The Committee, in the outcome of these discussions, resolved to take notice of the information produced by the Chamber of Audit, and commission the new Management of the Ministry to take several managerial decisions, to eliminate the shortcomings in spending State Budget funds, and ensure the implementation of the State Policy in the field of Cinematography, set out in the Law, ‘ On the National Programme for Development of the Film Industry in 2003/7´.