Insufficient funding of the nuclear account
Press Release – March 10, 2010
From June to December 2009, auditors from the Supreme Audit Office (SAO) performed an audit that focused on financial resources and state property managed by Radioactive Waste Repository Authority within the period from 2007 to 2008.
The Radioactive Waste Repository Authority (RAWRA) was established in 1997 as a result of Ministry of Industry and Trade Decision No. 107/1997 issued in pursuance of Article 26 of Act No. 18/1997 Coll., on the peaceful utilisation of nuclear energy and ionising radiation (the Atomic Act), as a state organisation responsible for the management of activities related to the disposal of radioactive waste. RAWRA observes the provisions of the Atomic Act, other relevant laws and regulations and the conditions set out in its statute as approved by the Government. RAWRA also keeps records of received radioactive waste and its producers, ensures the administration of payments to the nuclear account, and develops proposals for the determination of payments to the nuclear account.
Activities of RAWRA have been funded from two sides: from the nuclear account and from the state budget through the state budget chapter 322 – Ministry of Industry and Trade. About 90 % of expenditures were funded from the nuclear account that is administered by Ministry of Industry and Trade. “The Ministry – as the founder of RAWRA – failed to control the payments to the nuclear account as well as the financial resources, which RAWRA drew from the account “, said president of the SAO František Dohnal.
Generators of radioactive waste are obliged to allocate to their own debit financial provisions to cover expenses for disposal of radioactive waste. These financial resources have been accumulated in the nuclear account in the form of payments. Since 2002, RAWRA develops proposals for the determination of payments to the nuclear account. “Insufficient funding of the nuclear account will bring serious risks to the state budget as the state shall undertake the expenses for disposal of radioactive waste in case the financial reserves are not sufficient for disposal of radioactive waste”, said Dohnal.
RAWRA acquired the ownership of three disposal sites. Auditors revealed that operations of the Dukovany disposal site are provided by the radioactive waste generator under the contract of operations that was concluded in 1999. “This decision is contrary to the Atomic Act as it disables the intended state supervision over activities of radioactive waste disposal sites. We cannot rule out a prospective conflict of interests on the part of the radioactive waste generator“, said Dohnal.
The auditing operation was included into the 2009 Audit Plan of the SAO under No. 09/15. Eliška Kadaňová, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.
Radka Burketová
Press Speaker
Supreme Audit Office