Ministry of Defence had an insufficient overview of their property
Press release
May 4, 2007
The audit performed by the Supreme Audit Office (SAO) aimed at the management of state property and state budget funds earmarked for military healthcare. Auditors focused on years 2004 and 2005, including associated data from the previous time and till the end of the audit. The audit targeted on property of the Ministry of Defence with the total amount of CZK 1,7 billion and property of allowance organisations worth CZK 7,9 billion.
The audited bodies were Ministry of Defence (MD) and its organisational bodies Military Transport Centre (MTC) and Medical Support Administration (MSA), Central Military Hospital in Prague (CMH), Institute of Air Force Healthcare in Prague (IAFH), and military hospitals in Brno (MH Brno) and in Olomouc (MH Olomouc) as allowance organisations.
“The coordination responsibility for military healthcare activities provided by those subjects was under-specified. For example, the audit revealed that the Ministry of Defence had not ensure appropriate conditions for managing the state budget funding, which caused the inventory shortage detected after the field-hospitals had returned from their outland missions. The real cause of the shortage was not gathered or appreciated, neither was accounted the price differential. The ministry did not keep sufficient books of their property that was delimitated from CMH and IAFH already in 1994, but they kept accounts of it as long as in 2006”, said František Dohnal, president of the SAO.
As he continued, CMH and MH Brno ran unlicensed business, which was not subject of their installation documents. “For example, CMH retailed particular cosmetic articles and dry goods. MH Brno let non-residential premises in 2006 and carried out feeding for incoming boarders,“ explained president of the SAO. Neither CMH nor IAFH complied with the public order placement law when placing several orders.
The auditing operation was included in the Annual Audit Plan of SAO for the year 2006 under No. 06/22. Ladislav Zeman, Member of the SAO, controlled the auditing operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office