The SAO audited the state property under the management of DIAMO, state-owned enterprise
Press Release – July 15, 2011
The audit aimed at the property under the management of the state-owned enterprise DIAMO. Auditors scrutinized whether the Ministry of Industry and Trade made use of its rights and fulfilled its duties being the founding authority of the state-owned enterprise as well as the Ministry’s control activities regarding the DIAMO. Auditors also scrutinized how the state-owned enterprise DIAMO fulfilled the duties stipulated by the law, managed the state property, and administered its internal audit and management systems.
The Ministry of Industry and Trade failed to fulfil its duties as required by Act No. 77/1997, on state-owned enterprises, when:
- did not issue the statutes in due time after the state-owned enterprise DIAMO had been registered in the Commercial Register, the statutes omitted several necessities defined by the law;
- did not define the extend of approval powers of the supervisory board;
- did not perform any control over effective and economical management of the state property at the state-owned enterprise DIAMO during the audited period.
The audit revealed that the state enterprise DIAMO:
- did not register the changes to its ordinary stock without delays, that is immediately after the changes had emerged;
- did not record the complete information about the managed estates and kept accounts of estates, which were not in its possession according to the land registry;
- did not include the inflation clause in several lease agreements in spite it was entitled to do so;
- did not include information about material burdens of its properties in the balance sheet supplements for years 2008 and 2009.
The auditing operation was performed from August 2010 to April 2011. The audited period was years 2008 and 2009; where relevant, the preceding period and the period until completion of the auditing operation were also scrutinized. The audited bodies were Ministry of Industry and Trade and the state enterprise DIAMO. The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/18. Rudolf Němeček, Member of the SAO Board, managed the operation and prepared the audit conclusion as well.
Communication Department
Supreme Audit Office