There is a steadily increasing annually trend for municipal contracts going further into debt (non-payment) with the entrepreneurs.

There is a great variety of responses officials like to use with the only purpose not to follow contract conditions and not to pay to the providers: either money in the budget has run out unexpectedly or a provider is endlessly considered as non-complying with the contract himself. Thus, the open-air events and rallies on the eve of Maslenitsa (Pancake week) became a reason  for a businessman from the City of Ramenskoye Moscow region to get again incompliant with the contract.

In March of this year the businessman had passed through a tender procedure and signed a municipal contract with the municipal cultural center of Konstantinovskoye and held festive events in a total amount of RUR 177 000. However, the municipal customer started from  applying new requirements one after another and ended with full refusal to pay the contract.

Anyway, the events have already been staged and there were neither any complaints nor bad feedback from local community during the festivities. Indeed, the entrepreneur provided powerful sound amplifiers at his own expense, such specifics were not indicated by employer before.

Disagreeing with groundless demands, the entrepreneur sued the municipality at the Moscow Region Arbitral Tribunal and requested the Regional Business Ombudsman Vladimir Golovnev to intervene into the lawsuit as the third party. Substantial support and counselling for this purpose have been provided to the applicant by the Office of the Ombudsman in making his legal protection.

The applicant informed, however, of the case being recently resolved in order of the pretrial procedure and as a result, the settlement agreement has been concluded between the municipal cultural center with invoices to be properly paid. The entrepreneur dropped the lawsuit as the services were totally paid.

Later the businessman extended his appreciation to the Moscow Regional Ombudsman Vladimir Golovnev: He specially stressed that the assistance and legislative support were promptly provided and played the crucial role for the case to be completely settled.