Double red card for managing state coffers

The State Audit Institution (DRI) determined that last year 11,13 million euros were paid from the state budget for the engagement of contractors for the work, that there were a large number of contracts for already systematized jobs, while for some of those contracts there is no documentation that the work was done.

In addition, almost 29 million euros were paid from the current budget reserve without the opinion of the Agency for the Protection of Competition (AZK), the total outstanding obligations of the state were 122,88 million euros, illegal diversions of budget spending amounted to about 25 million euros, contracts were concluded on work for additional tasks in violation of the Labor Law, while in temporary financing money was distributed to consumer units according to the discretionary decisions of the Ministry of Finance.

These are just some of the major irregularities found by the SAI during the revision of the draft law on the final account of the state budget for last year.

The SAI gave a double negative opinion on last year's final budget account because, among other things, it determined that numerous laws were violated, that inflows in the budget were not shown in accordance with the law, that a decision was made on temporary financing from the budget without spending limits, that the money not diverted in accordance with legal procedures...

This is the first time that the Ministry of Finance has received a double negative opinion on both the audit of regularity and financial operations when it comes to the final account of the state budget.

The SAI audit refers to the period when this department was managed by the Minister of Finance and Social Welfare Milojko Spajic. The audit was led by the former president of the Senate of the SAI Milan Dabović, while the other member of the collegium was a senator Nikola Kovacevic.

Due and outstanding 38,75 million

According to the data of the SAI, at the end of last year, the total outstanding obligations of the state budget were 122,88 million, of which 38,75 million were due at the end of that year, while the rest of 84,12 million was due this year.

Of the 38,75 million outstanding obligations, the share of the Health Insurance Fund was 29,80 million, the Public Works Administration 4,86 million, the Ministry of Finance and Social Welfare 928.93 thousand, the Judicial Council 559.06 thousand, the Traffic Administration 437.297 thousand, the Cadastre Administration and state property 366.761 thousand and the Employment Agency 347.90 thousand. It was also established that the contracted obligations are over 1,16 million euros compared to those defined in the budget.

The SAI established that last year Spajić's department spent 470.772,89 euros for work contracts, and the audit included 18 contracts, from which it can be seen that these fees ranged from 290 to less than 800 euros.

There are no reports on the work performed

"The auditor was not given the reports of the responsible person, which confirm that the contracted work was performed, and according to the statement of the authorized person, the ministry does not have reports on the performed work, as evidence that the work was performed, which is not in accordance with the instructions on the work of the state treasury. The audit established that 13 persons, hired on the basis of a work contract, performed tasks for which workplaces were systematized by the rulebook on internal organization and systematization of workplaces, which is not in accordance with the Law on Civil Servants and State Employees", the SAI stated.

Ministry of Economic Development, under the leadership Jakov Milatović, last year spent 123.714,30 euros for work contracts, and according to data from the SAI report, those fees ranged from 300 to 1.2500 euros.

"The auditor was not given the reports of the responsible person, which confirms that the contracted work was performed, and according to the statement of the authorized person, the ministry does not have reports on the performed work, as proof that the work was performed, which is not in accordance with the Instructions on the work of the state treasury" ; states the SAI, adding that nine contractors performed tasks for systematized workplaces, which violated the law.

Ministry of Health under the leadership Jelena Borovinić, spent according to the findings of the SAI 30.917,70 euros, the audit controlled 25 contracts for which the fees ranged from 250 to 750 euros.

Ministry of Agriculture under the leadership of the Minister Aleksandar Stijović it spent 241.186,46 euros last year, the audit covered 36 contracts for which the fees ranged from 400 to 500 euros. The SAI determined that 27 contractors were paid in this department for jobs for which jobs were systematized.

Account of the Agency outside the Treasury

For the Revenue Administration, it was determined that the value of the work contract was 123.175,64 euros and that 51 contractors were hired for already systematized jobs, and after the merger of this administration with the Customs Administration, the value of those contracts was 324.945,32 euros, and it was determined that 23 people hired for jobs where jobs are systematized.

The audit determined that in 2021, budget spending was exceeded in the amount of 85,23 million euros, of which 61 million euros were allowed to be exceeded, while the rest of the money, 24,23 million, was related to the enforcement of court decisions on the item "repayment of obligations from the previous period". This happened because the Ministry of Finance did not divert the money needed for this expense to the spending units, which, as stated by the SAI, it had to do by law.

The SAI established that the Investment Agency (MIA) has an account with CKB Bank, which at the end of December last year had

13.299 million euros and that this account is not consolidated, with no established purpose.

"In the Treasury's General Ledger, there is no record of inflows, outflows, nor the initial and final balance of the account. It is recommended that the annual law on the budget determine the plan for the use and purpose of the money that is in the account of the Investment Agency and that the state body responsible for its management be determined", emphasized the SAI.

The SAI states in the audit that the Ministries of Finance, Capital Investments, Economy, and the PIO Fund and the Environmental Protection Agency concluded contracts on supplementary work, that some of these contracts were concluded retroactively, some do not contain the employer's headquarters, data on working hours, rights , obligations and responsibilities regarding issues of health and safety at work, deadlines for payment of compensation, which violated the Labor Law.

Almost 29 million euros were paid to AZK without an opinion

71,3 million was paid out of the current budget reserve last year, of which 28,59 million was paid without the opinion of the Agency for the Protection of Competition (AZK).

Of those 28,59 million, the Ministry of Finance paid 16,49 million for part of the founding role of the national airline ToMontenegro (16 million) and 490 million for the establishment of Montegro Works.

The Ministry of Capital Investments gave 10 million without opinion to AZK for the founding stake of ToMontenegro and 2,1 million to the Montenegrin operator of the electricity market to encourage the production of electricity from renewable sources and highly efficient cogeneration.

The Ministry of Finance also paid 1,02 million from the budget reserve to the supplier of equipment for the National Security Agency, of which 78.06 thousand related to the payment of VAT, which was not separately stated on the submitted invoices.

All supported by evidence

Yesterday, Dabović and Kovačević told journalists that they had given 53 recommendations that should be implemented in order to eliminate all identified irregularities.

Dabović pointed out that one of the most important findings is that in the Information on the need to adopt a decision on the temporary financing of consumer units, total limits were established on a monthly level, but no limits were established per consumer unit, but rather the Ministry of Finance decided at its discretion how much each consumer unit would receive money.

Kovačević said that they published the report yesterday because it was the last day to submit it to the Parliament and it was not timed before the elections.

Spajić said on Twitter before the DRI press conference that the DRI is "the main DPS institution", and that the parliamentary majority has not replaced it for two years and that "for the first time ever, it is holding a press conference before the elections".

Kovačević stated that Spajić received the preliminary report, but that he did not respond to it and thus disputed the findings, and that the DRI supported everything with evidence.