Errors at the Ministry of Labour and employment offices concerning EU allowances for the support of employment
Press Release – May 27, 2013
The Supreme Audit Office performed an audit of Operational Programme Human Resources and Employment, namely its priority axis 2 - Active Labour Market Policy. Allowances in the total amount of CZK 3,700 million were scrutinized. Auditors focused on 29 individual projects and found errors with six audited projects. Errors in the amount of CZK 140 million were revealed.
According to a result indicator, one audited project was aimed at creation of 33,000 job vacancies. The objective was met in 2011 as 40,000 jobs were created. However, up to 95 % of those created jobs were only temporary as the job positions were usually cancelled after one year.
Improper conditions for allowances were set by the Ministry of Labour, namely with grant projects focused on employment increase with the unemployed and groups at unemployment risk. Auditors revealed that allowances were paid to people who had jobs, worked as entrepreneurs, and represented citizens´ associations that participated in the projects. In reality, these people actually gave employments to themselves. During a tendering process, the Ministry did not exclude one applicant for a project related to the national occupation classification system in spite the applicant lacked the required qualification. In the end, this applicant´s offer was assessed as best and awarded the tender. Thus the Act on Public Procurement was violated, as well as the budgetary regulations. The violations amounted to CZK 148.8 million.
Some of the audited employment offices violated the Public Procurement Act, namely in Pardubice and Ostrava. For example, the offices paid lump sums for some used services - without regard to actually procured works. In some cases, the administration costs related to direct support exceeded the amount of provided allowances - for example, the costs were twenty times higher than the allowed amounts at the employment office in Liberec. In Ústí nad Labem, some participants of a PC workshop had previously passed high school leaving examinations on computers.
Some of the audited employment offices purchased large amounts of promotional gifts, sometimes in the amount of tens of thousands. Other offices purchased promotional gifts, which had no relation to the projects´ objectives - for example, picnic blankets, thermo bags, and beach volleyballs. The employment office in Jihlava paid CZK 200,000 for organizational arrangements related to three press conferences, which were only attended by one journalist.
Beneficiaries made errors as well. Auditors expressed doubts whether some participants should have been enlisted to individual educational projects. Among the job-seekers were two elementary school directors, who were retrained as welders.
For further details about auditing operation No. 12/19 (in Czech only), see the following link: http://www.nku.cz/assets/media/informace-12-19.pdf (314 kB).
Communication Department
Supreme Audit Office