Azerbaijan Accounting Chamber recommends State Oil Fund to review strategic partition of assets

Azerbaijan Accounting Chamber has realized audit measure on "management and use of SOFAZ’s funds in 2008-2009", in accordance to the Business Plan for 2010.

The AC’s report says that the Fund’s activity in this sphere was appreciated.

The income from management of Fund’s assets was overfulfilled by 55.3% in 2008, 44.7% in 2009, in accordance with affirmed budget projects. According to the report, use of Fund’s assets is implemented by the president’s orders in accordance with the approved directions. 50% of total foreign currency was in USD, 40$ in Euro, 5% in pound sterling and 5% in other currencies, during the audit period. 96.89% of Fund’s investment was placed in bonds, 1.72% in liquid funds, 1% in deposits, 0.04% in ordinary shares, 0.35% in current accounts.

SOCAR was given several recommendations during the audit. That is, taking into account the consideration of Fund’s investment activity for more lasting period, as well as turning oil incomes into more durable financial instruments. It has been considered expedient to review strategic distribution of Oil Fund’s means, analysis of profitability indicators managed by foreign managers and taking appropriate measures, increase preventive measures realized in connection with reduction of the risks occurred as a result of hesitations on international capital and securities market conjunctivas to minimum.


/APA/