Violation of as many as six laws in everyday business operations, failure to disclose actual costs, and employment outside legal procedures are just some of the irregularities that the State Audit Institution regularly records during its audits of some public companies, as well as other users of state funds. However, such findings most often remain a dead letter on paper, assure those dealing with this issue.
"Lately, audit reports concerning public companies have brought us the most dramatic findings and we learn the worst things from those reports," says Marko Sošić from the Alternative Institute.
Last year, the SAI submitted seven negative reports to the Supreme Prosecutor's Office, and four this year. However, it is unknown what individual prosecutors' offices have determined in previous years.
"State prosecutors' offices take action only when reports submitted to the State Audit Office (DRI) indicate suspicion that a criminal offense has been committed for which prosecution is being carried out ex officio, as well as in cases where a criminal report has been filed with the report regarding the findings from that report," the Supreme State Prosecutor's Office announced.
Even a double negative opinion does not mean that there is criminal liability, says Sošić. However, there are other types of liability for obvious negligent management of an institution or company. As the most drastic example, he cites the recent double negative opinion of the DRI on the operations of Solar Gradnja, a subsidiary of EPCG.
"There is a case to determine the responsibility of the Board of Directors, which, among other things, stood idly by last year after almost 350 people were employed for an indefinite period, without checking work experience, without public advertising, without determining their qualifications. I don't know what it is, whether it is a criminal offense, whether it is a misdemeanor, but it is certainly an occasion for the owner, or in this case the founder of EPCG, and the Government as the ultimate owner, to review the responsibility of such a Board of Directors," explains Sošić.
The SAI indicates that the number of those who spend budget money but treat it irresponsibly is worrying, which is why the number of negative opinions is growing.
"In 2025, as of July 01, seven negative opinions and one positive opinion with a qualification were given. Compared to 32 audits conducted in 2024, 11 positive opinions, 9 positive opinions with a qualification and 23 negative opinions were given in twenty-seven audits. Through its findings and recommendations, the Institution strives to strengthen accountability, integrity and transparency of work, provides insight into how public funds are managed and strives to improve the performance of the public sector," the SAI said in a statement.
The NGO sector says that they will not wait for other institutions to wake up from their winter sleep.
"For example, we will send the EPCG Solar construction report to the Budget Inspection, the Joint Procurement Inspection, and the Labor Inspection, and we will encourage them to at least try to determine misdemeanor liability in this case," said Sošić.
Everything should start with the Government, which, according to Sošić, has been ignoring the SAI recommendations for years, which relate, among other things, to the final budget account. And when the report comes to the Parliament, which should pay special attention...
"The new parliamentary majority is turning into lawyers, for example, heads of public companies, and that hearing is essentially turning into a trial of the State Audit Institution, which dared to go to that company in the first place, and then to give such findings," Sošić points out.
The key question remains: does the state really care how its officials spend all citizens' money, or do they think the pie is big enough for everyone to share it as they please?
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