The management of court disputes in the Ministry of Internal Affairs (MUP) has been assessed as unsuccessful, and this government department shows serious systemic shortcomings: the absence of written procedures, poor records, weak mechanisms for peaceful dispute resolution, lack of analysis, insufficient cooperation with the Ombudsman, and a chronic lack of professional staff.
This was announced today by the State Audit Institution (DRI).
The statement states that the SAI conducted an audit of the effectiveness of litigation management in the Ministry of Defense and the Ministry of Interior, focusing on records, institutional capacities, mechanisms for peaceful resolution of labor disputes, cooperation with the Protector of Property and Legal Interests, analysis of the causes of disputes, corrective measures, and enforcement of court judgments.
The SAI said that the competent SAI Collegium, which managed the audit in question, consisting of Dr. Branislav Radulović (senator-head of the Collegium) and Mr. Zoran Jelić (Chairman of the Senate-member of the Collegium), assessed the management of court disputes in the Ministry of Defense as partially successful, while in the Ministry of Internal Affairs, the management was assessed as unsuccessful.
"The Ministry of Defense has established basic mechanisms for monitoring and managing court proceedings, including records, analyses and regular reporting. The growth in the number of labor disputes indicates the need for more decisive and efficient implementation of corrective measures. On the other hand, the Ministry of Internal Affairs shows serious systemic shortcomings: the absence of written procedures, poor records, weak mechanisms for peaceful dispute resolution, the absence of analyses, insufficient cooperation with the Protector and a chronic lack of professional staff," the statement reads.
The SAI said that both ministries are not adequately planning funds for the execution of obligations arising from lost court cases.
"Judgments are mainly enforced through forced collection, which causes additional costs for the state budget. In the period 2020-2023, almost 6.000 court proceedings based on employment relations were initiated against these two ministries. Through forced collection, 3.924.841,49 euros were paid from the budget of the Ministry of Defense during that period, while as much as 11.647.504,68 euros were paid from the budget of the Ministry of Internal Affairs for court disputes on all grounds (labor disputes, unpaid invoices, compensation for damages, etc.). An analysis of a limited sample showed that, in court disputes based on employment relations, ancillary costs (interest, litigation costs, enforcement) account for up to 40% of total expenditures," the SAI said.
They reported that it was also noticed that a large number of lawsuits were being filed retroactively due to the then legal solution, which did not provide for a statute of limitations for claims, and some employees filed multiple lawsuits over the years, including for symbolic amounts, which further burdened the system - to the benefit of law firms.
"It is worrying that the Ministry of Internal Affairs has lost almost all labor disputes, while the Ministry of Defense occasionally succeeds thanks to the engagement of the internal service and cooperation with the Protector. Based on the audit conducted, it was concluded that a systemic change in the way litigation is managed is necessary: more consistent application of regulations, strengthening of internal procedures and controls, better coordination with competent institutions and improvement of employee capacities. An efficient litigation management system represents not only the protection of the interests of the state, but also the basis for a responsible attitude towards public funds and employees," said the SAI.
The SAI states that they have issued ten recommendations aimed at strengthening the institutional framework, improving records and analysis, reducing legal and financial risk, and more rational management of budget funds.
"Due to the significance of the findings established by the audit, the Audit Report is submitted for information to the Committee on Security and Defense and the Committee on Economy, Finance and Budget of the Parliament of Montenegro. The interested public can familiarize themselves with the content of the final Performance Audit Report "Management of Expenditures from the Budget of Montenegro for Litigation Based on Employment Relations" on the official website of the State Audit Office, section www.dri.co.me", said the DRI.
The Ministry of Defense is headed by Dragan Krapović from Democratic Montenegro, and the Ministry of Internal Affairs is headed by his party colleague Danilo Šaranović.
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