State Audit Reports on Administrative and Financial Chaos in Ministries

Total Croatia News

Hard to believe, but the Croatian government is not the best run in the world.

The State Audit Office has submitted to Parliament 110 individual reports on the conducted financial audits of 12 state budget users (the Croatian Health Insurance Institute, ministries of defence, culture, veterans’ affairs, agriculture, justice, foreign affairs, demography, environmental protection and energy, health, education and the Tax Administration), 50 local self-government units and many political parties, reports Jutarnji List on December 20, 2017.

Here are just a few examples:

Irregularities and omissions established in the accounting department and spending on intellectual and personal services are the reasons why the State Audit Office gave only a conditional approval to the Ministry of Foreign and European Affairs. The audit found interesting employment practices at the embassy in Washington. In 2016, with the prior consent of the Ministry’s General Secretariat, two contracts were concluded on the execution of administrative tasks with a locally engaged person for a term of three months for each contract. With this same person the agreements were concluded in the past years, and after the expiration they were extended. It was agreed that the person would receive a monthly fee of 3,200 US dollars and an additionally monthly fee for transportation. However, after 13 August 2016, the contract with the person was not extended, but they still continued to receive a monthly fee of 3,200 USD. This continued until 13 May 2017, and the payments without a contract were approved by the Croatian Ambassador in Washington. During that period, the person received 28,800 dollars.

At the Ministry of Veterans Affairs, the situation is quite chaotic. The audit found that for a portion of due receivables amounting to 2,782,078 kunas in 2016 the Ministry did not take any measures to force payment and collect its debts in a timely manner. It was also found that during 2016 the Ministry did not initiate any loan collection measures, although a one-year deadline had passed, and in 2015 it was found that 116 users did not justify spending in the total amount of 2,810,658 euros.

The Ministry of Culture also received conditional approval from the State Audit Office, which was influenced mainly by ignored recommendations from past audits, as well as irregularities and omissions related to accounting and expenses.

The Ministry of Science and Education has also received conditional approval. The Ministry owns 122 apartments in the Borovje neighbourhood in Zagreb. The apartments are meant to be used by young scientists. According to the Ministry’s data for 2016, out of a total of 122 apartments, 26 are rented, for 12 flats the leases have expired, but tenants have not moved out, 21 apartments are illegally used by unknown persons, and 63 apartments are vacant. Last year’s rental income amounted to just 170,321 kunas, while expenditures related to flats were 854,115 kunas.

The Ministry of Defence also received a conditional approval due to not taking adequate measures for the collection of debts. The Ministry is owed almost 300 million kunas but has not done virtually anything for debtors to pay their debts.

The Ministry of Transport received a conditional approval due to irregularities related to delays in registration of concession debts.

The Ministry of Justice misrepresented and unrealistically counted the value of its properties. Also, in March 2016, the Ministry of Justice, without prior publication, conducted a negotiation procedure for the procurement of Microsoft licenses, and in April 2016 concluded a contract with selected companies for the purchase of Microsoft software products worth 16 million kunas, even though the acquisition of licenses for software products and services should have gone through the Central Office for Public Procurement.

At the Ministry of Agriculture, the audit found a series of incorrect accounting practices. There is also a traditional problem of agricultural incentives paid from the European funds and intended for the maintenance of pasture lands ending up in the wrong hands.

Translated from Jutarnji List.


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