In case funds for operating the RUIAN register are not guaranteed, the EU subsidy for its development will have to be returned
PRESS RELEASE on Audit No. 14/02 – November 10, 2014
The Supreme Audit Office (SAO) focused on the development and operation of the Register of territorial identification, addresses, and real estate (“RUIAN”), which is one of four national basic registers. The RUIAN register includes data on basic territorial units – for example on the part of the state/region/municipality, the cadastral area, the building address and/or parcels. It also contains information about electoral districts or special information required for postal delivery. Data from the RUIAN register can be used by public authorities as well as the public who have free viewing access via the Internet.
The RUIAN register has been prepared, developed, and operated by the Czech Office for Surveying, Mapping and Cadastre (“CUZK”). A total amount of CZK 749.6 million was paid for the development of this registry from 2001 to April 2014. Funds from both the State budget and from the EU funds were utilized. The CUZK put the RUIAN register into operation on July 1, 2012, but it was not completed until June 2013, which means one year after the beginning of the operation. For the operation and management of the RUIAN register, the CUZK paid CZK 75.3 million until April 2014.
In addition, not only the CUZK but also other entities can enter data into the RUIAN register. Auditors found factual errors in the data, which had been uploaded in the RUIAN register by several municipalities and civil authorities. Despite the fact that the CUZK urged these bodies to correct the found errors, some municipalities and civil authorities did not do so. As a result there is a risk to the accuracy and completeness of the data in the RUIAN register.
Auditors scrutinized the public procurement processes related to the development and operation of the RUIAN register and found out that the CUZK had broken the law with some of them. For example, the CUZK favoured the original supplier of data centre services against other contenders. The supplier of that time did not have to include costs of technology migration into their offer as the technologies had already been placed in their premises.
The CUZK increased its dependence on one particular supplier and their technologies when it placed the development of the RUIAN register and its agenda information systems to the same contractor who had already arranged the existing information system of cadastre for the CUZK. The long-term dependence on one supplier can negatively impact the economy of subsequent tenders and establishes a technological dependence on a specific supplier and the chosen method of solution, which brings a serious operational risk for the RUIAN register.
In line with the conditions for granting EU subsidies, supported projects must continue working at least during so called “sustainability period”, which is five years till mid-2018 with the RUIAN register. During this period, subsidized projects must have secured financing. In case of the RUIAN register, the SAO detected that the financing was not secured for the entire sustainability period. The SAO warns that unless the condition of sustainability is fulfilled, there is a risk that the EU subsidy or its proportionate part will have to be returned.
Communication Department
Supreme Audit Office