A disunited approach to the Operational Programme Industry and Enterprise
Press Release – December 10, 2007
Auditors from the Supreme Audit Office (SAO) focused on administration, drawing, and usage of financial resources from the Operational Program Industry and Enterprise (OPIE). The audited bodies were the Ministry of Industry and Trade, CzechInvest – Investment and Business Development Agency, which mediated six of the OPIE projects, and several grant payees.
The audited period extended from 2004 to 2006. As a sample, 42 projects worth CZK 850 million were selected for the auditing operation. The sum represents some 9 % from the OPIE total allocation of the resources for the period 2004–2006.
The Ministry of Industry and Trade created competency guides for implementation of projects co-funded from the Structural Funds but then violated the rules of the European Community when failed to distribute them to all payees. As a result, 3 payees kept accounts of exchange rate losses (around CZK 3 million) as expenses.
The tedious administration process puts behind the drawdown. “On average, it takes 249 days for the submitted application to its approval; with some applications it lasts 300, even 400 days. A few payees received the grant decision together with the terms after the projects had already been finished and the conditions had become faint,“ said František Dohnal, president of the SAO.
Several of the grant payees insufficiently placed government contracts, and kept deficient booking. CzechInvest obeyed the guides given by the ministry and acted at distinct variance with the government decrees and rules for the budget funds management. Several times, CzechInvest missed the 60-day limit for an application decision when implementing 35 out of the audited 42 projects. With some applications, the process took more than 200 or 300 days.
The auditing operation was included into the 2007 Audit Plan of the SAO under No. 07/05. Jiří Kalivoda, Member of the SAO, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office