The State Fund for Transport Infrastructure paid millions of CZK for outsourced services, which could have been done by its employees
PRESS RELEASE on Audit No. 14/30 – July 7, 2015
The Supreme Audit Office (SAO) scrutinized the State Fund for Transport Infrastructure (SFDI) and its management of the State property and budget funds within the period from 2011 to 2014. Auditors aimed at purchases of office supplies, the operation of service cars, and outsourced services. Most serious errors were revealed with procured consultancy and legal services, for which the SFDI paid more than CZK 3.5 million during the audited period.
The State Fund for Transport Infrastructure mostly selected providers of legal and consultancy services without calling and evaluating tenders. For example, the SFDI paid CZK 300,000 to a private agency for check-ups of tender procedures. However, the presented documentation makes it impossible to determine how much of the work was done by the agency and how much did the employee at the SFDI, who also participated during the inspection. Invoices only included a breakdown of the agency’s services in spite the agency was contractually obliged to submit complete lists of works. In addition, the SFDI is responsible for inspections of tenders and had to carry out this function itself.
The State Fund for Transport Infrastructure also paid a hired agency over CZK 500,000 for inspections performed at the Railway Infrastructure Administration, state organization, and aimed at an investigation of compliance with Public Contract Act. But the public contracts in question would apply for exceptions from the Act. One tender procedure’s inspection cost about CZK 23,000, which roughly makes twice the amount paid for the same type of inspections performed by the same agency at the Road and Motorway Directorate. In this case, it is also impossible to determine the extent of the agency’s works and the Road and Motorway Directorate was also responsible for performing the task itself.
Under the projects, the State Fund for Transport Infrastructure promoted new technologies with the support amounting to CZK 244 million. But it was not possible to objectively measure the benefits from the new technology as the SFDI only monitored the final evaluations, which were elaborated by the beneficiaries. The SFDI did not oblige the beneficiaries to describe the benefits using specific data, for example an exact rate of noise reduction in the road’s surrounding area. Instead, the beneficiaries used general description terms when referring to the benefits, for instance: “Conditions improved in the area concerned.”
Communication Department
Supreme Audit Office