The State Audit Institution (DRI) gave a negative opinion on the regularity of the operations of the Ministry of Economy in 2020, as it was determined that this department operated contrary to numerous laws, regulations and regulations.
We are talking about the period when this department was managed by Minister Dragica Sekulić, who is now a member of the DPS.
The regularity audit established that this government department did not operate in accordance with the laws on management and internal controls in the public sector, the budget and fiscal responsibility, state property, personal income tax, civil servants and employees, concessions, the state audit institution, public procurement ... Business was not aligned with a number of rules and regulations, as well as the Government's work program.
A conditional opinion was given on financial operations.
The collegium for this audit was headed by a member of the Senate, Zoran Jelić, while the other member of the collegium was the president of the DRI Senate, Milan Dabović.
Numerous commissions
The audit determined that this department did not list the assets and liabilities for 2020 until the moment of the audit, which acted contrary to the current regulations, that the IOPPD did not submit the forms to the Tax Administration within the legal deadlines, while an inspection of the personnel files of the employees determined that employed persons who they do not meet all the conditions stipulated in the job description of the position, especially in terms of educational level, field of education and work experience.
It was established that numerous commissions were formed whose members received from 200 to 4.287,50 euros per year in net amount, i.e. a total of 71.095,24 euros, which is why the SAI recommended that, in accordance with the Decree on the Organization and Mode of State Administration, determine whether it is about jobs that are within the competence (regular jobs) of the ministry itself. This is in order to rationalize the use of public money.
"It was established that the Ministry calculated and paid only taxes and surcharges on the contracted net fees in the amount of 130.914,24 euros. In addition, in the documentation that the auditors had access to, these persons did not provide evidence of their labor-legal status, given that the tax and surcharge according to the mentioned contracts are calculated and paid only in a situation in which the engaged persons are employed by another employer. "Based on the calculation of taxes and contributions for unemployed persons and those who are on the records of the Employment Agency based on concluded employment contracts, it is concluded that taxes and contributions up to 46.705,01 euros have been calculated less on this basis," states the SAI.
230.000 euros to contractors
The supreme audit indicated that the conclusion of work contracts for the performance of tasks from the description of systematized jobs is not in accordance with the Law on Civil Servants and State Employees, and that the department headed by Sekulić hired a large number of executors under work contracts full-time and for longer periods of time period.
"It can be concluded that the subject of the audit does not differentiate between employment and engagement of persons under a work contract. Based on the above, it is concluded that this type of engagement leads to negative consequences that are reflected in legal and social insecurity, which can ultimately lead to a judicial epilogue. The audit determined that in 2020, the Ministry of Economy reported EUR 229.943,46 in terms of expenditure on work contracts," the report states.
The audit determined that the public advertisement for subsidies to encourage direct investments and improve the competitiveness of the economy, which was announced in 2019, does not contain essential conditions in the basic text that must be met by candidates in order to be able to participate in the competition for money.
Those interested could see those conditions in a special attachment on the Ministry's portal, which, according to the SAI, did not ensure the necessary transparency of the procedure.
The state auditors could not comment on the accuracy of the data on receipts from loans and donations presented in the Cash Flow Report because they did not receive the requested documentation.
The recommendations given by the SAI should be implemented by the Ministries of Economic Development and Capital Investments, which took over the duties of the former Ministry of Economy.
The private healthcare facility was classified as an industry
The SAI established that the private health institution "Nikčević" was granted a subsidy of 68.000 euros by the decision of the Ministry of Economy, within the program line for the promotion of direct investments.
The SAI explained that this department did not emphasize in the public advertisement that the program line for encouraging direct investments refers to companies from the field of industry.
"PZU 'Nikčević' is not a company from the field of industry, but a health institution that did not have the right to participate in the advertisement for this program line and receive a subsidy intended for companies and entrepreneurs from the field of industry", says DRI.
It was established that in 2020, the Ministry of Economy did not control the intended use of subsidies to encourage direct investments and improve the competitiveness of the economy, nor did it submit a report on this to the Government.
Training without legal procedure
The Ministry of Economy has determined the need to provide assistance to the most vulnerable categories of the population in the municipalities of Rožaje and Gusinje, although, the SAI points out, this is not within its jurisdiction.
The SAI determined that two employees received professional training at the expense of taxpayers at the Faculty of Business Management in Bar, which cost about 8.000 euros, and that the issue of professional training was not legally regulated.
"It is recommended to the subject of the audit to legally regulate the issue of the expert
training of employees and passed an internal regulation that would determine the method i
conditions for the payment of school fees for employees", is the recommendation of the SAI.
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