SAO audited financial means earmarked for measures regarding the waste disposal

Press Release – May 18, 2011


From June 2010 to January 2011, auditors from the Supreme Audit Office (SAO) were performing auditing operation No. 10/14 that aimed at Ministry of Environment and its managing activities within the Operational Programme – Environment and activities of the State Environmental Fund of the Czech Republic related to Priority axis 4 — Improve the quality in waste disposal and remove old ecological burdens. Auditors also focused on the implementation of the waste management plan issued by Governmental decree No. 197/2003 Sb. and scrutinized whether the Ministry had assessed the benefits coming from the utilisation of EU funds earmarked for improving the waste disposal within the period 2003–2007.

Within the period 2003–2007, the Ministry of Environment as well as the State Environmental Fund of the Czech Republic utilized CZK 3.4 milliard allotted from the EU and the state budget funds. However, the improvements of waste disposal management and achievements of the waste management plan were not assessed.

For the period 2007–2013, around CZK 15 milliard were allocated to Operational Programme – Environment for waste disposal improvement plans. The Ministry and the Fund failed to monitor the utilization of the procured facilities that were aimed to improve the quality in waste disposal. During the implementation of the Programme, administrative rules and conditions for the beneficiaries varied and lacked clarity. Since 2009, the applicants were not informed of the actual economic criteria and the assessment process failed to be transparent.

The Ministry did not update the waste management plan, which had been issued by Governmental decree No. 197/2003 Sb., in keeping with the national and EU legislations. Since 2003, the most urgent issue has appeared to be biologically decomposable communal leavings, which are being stored in landfills in excess of the amounts mentioned in Council Directive 1999/31/EC on the landfill of waste. The Directive required a decrease of the amounts of communal leavings stored in landfills by 2010. But before January 2010, the legislature was not enabling the support for constructions of new waste incineration plants, which are crucial for the implementation of the decree No. 197/2003 Sb. The current state does not indicate that the criteria will be met by 2013. As a result, the EU may impose sanctions towards the Czech Republic.

As for the beneficiaries, the most serious shortcomings were found with one beneficiary. The budgetary discipline was violated concerning CZK 33.9 million allotted from the EU funds and CZK 6 million from the State Environmental Fund.

The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/14. Zdeněk Brandt, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.

Communication Department
Supreme Audit Office

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