The State Audit Institution (DRI) issued a double negative opinion on the operations of the Montenegrin Electricity Distribution System (CEDIS) for the year 2022, as failures were found in the operation of this state energy company.
The financial audit found, among other things, that the company does not have documentation regarding the part of its property that relates to land and construction facilities and whose value is 5,6 million euros and which was not declared as a founding contribution.
It was recommended that the company, in cooperation with the founder (EPCG), continue activities to resolve the property legal status of the property so that CEDIS can realistically show the state of property and capital.
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It was established that CEDIS incorrectly presented deferred tax liabilities in its balance sheets and that it is necessary to make a correction in this matter by making a correction in the amount of 3.616.168 euros.
The audit of regularity found deviations and inconsistencies in CEDIS operations with the Law on Management and Internal Controls in the Public Sector, the Labor Law, the Law on Obligations, the Law on Business Companies, the Law on Public Procurement and the Rulebook on Office and Archive Operations.
The SAI stated that CEDIS employed a significant number (on average 247 persons per month) through the Agreement on the takeover of employees of the Agency, companies, state bodies (employees and persons in a state of emergency), state and local enterprises, without conducting a public advertisement .
"Society should ensure equal availability of jobs to unemployed persons and limit the scope for discrimination of persons seeking employment. The services of the Agency for Temporary Assignment of Employees should, as a rule, be used only for jobs that require temporary work. When conducting procurements, the society did not comply with the Law on Public Procurement and did not implement public/simple procurement procedures, which resulted in the division of procurement items, avoidance of public procurement procedures and the application of the Law on Public Procurement. During 2022, the company carried out simple procurements of meters, construction works, electrical material/equipment, facility security services , procurement and testing of PP apparatus, procurement of concrete houses, office materials, office furniture, computer equipment, etc. total estimated value of procurement €2.023.624,98 and total contracted value €2.497.040,66 (including VAT) without implementing the appropriate of the public, i.e., simple procurement procedure," states DRI.
The CEDISA audit report will be submitted to the Board of Directors. EPCG, which is the founder of the company, to the Ministry of Finance and the Ministry of Energy and Mining, in order to improve the position of the company and strengthen responsibility in the management of public finances and the Committee for Economy, Budget and Finance of the Parliament of Montenegro.
Pursuant to the Protocol on Cooperation, the report in question will be submitted for inspection to the Supreme State Prosecutor's Office.
By March 15, CEDIS should submit to the SAI the Action Plan for the implementation of the issued recommendations, and by September 2, 2024, the Report on the implemented actions based on the prepared and submitted recommendations.
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