Liquidation of state-owned enterprises: some have been ongoing for over 20 years, the Ministry of Industry and Trade has failed to fulfil some of its obligations as founder
PRESS RELEASE ON AUDIT NO 24/21 – 24 November 2025
The liquidation of state-owned enterprises under the authority of the Ministry of Industry and Trade (MoIT) and the Ministry of Agriculture (MoA) has been ongoing for more than 20 years. In most cases, this is due to circumstances beyond the control of the liquidator or founder (such as protracted litigation), but in one of the seven enterprises audited, the inaction of its management contributed to the long delay. At the same time, it also emerged that the MoIT had failed to fulfil some of its obligations as founder. This is the conclusion of an audit by the Supreme Audit Office (SAO) focused on selected state-owned enterprises in liquidation between 2020 and 2024.1
At the beginning of 2020, there were a total of 28 state-owned enterprises in liquidation in the MoIT and MoA sectors; in 2024, there were 13 remaining. The liquidation of the seven audited enterprises lasted from eight to 23 years. In the case of Teplice Brick and Ceramic Works, the liquidation process is being prevented by enforcement proceedings, which the enterprise became subject to as a result of the inaction of its then director, who was subsequently appointed as liquidator.
The audit also showed that the MoIT did not perform its role as founder without errors. The Ministry did not carry out inspections of state-owned enterprises in liquidation or approve their financial statements, even though this is its duty. In contrast, the MoA did carry out these inspections, although it also had some shortcomings – for example, in the case of the Valtice state farm, it had information on the total value of the designated assets of this enterprise, but neither the MoA nor the liquidator were able to identify what assets were specifically involved.
The SAO found that four of the seven state-owned enterprises in liquidation had violated legal regulations, most frequently in the areas of accounting, asset inventory, the submission or publication of financial statements, and the keeping of accounts at the Czech National Bank. In two cases, the liquidators did not act with due diligence, which had a financial impact totalling CZK 160,000. However, the SAO did not find any ineffective management of state assets or funds.
Communication Department
Supreme Audit Office
1] Paints and Varnishes, state-owned enterprise "in liquidation"; Brno Paper Mills, state-owned enterprise – in liquidation; Teplice Brick and Ceramic Works, state-owned enterprise in liquidation; LAT – Levelling and anchoring technology, state-owned enterprise in liquidation; Česká Kamenice state farm in liquidation; Jeneč state farm, state-owned enterprise in liquidation; Valtice state farm, state-owned enterprise in liquidation.