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news 28 Dec 12

Serbian Auditors Spotlight Procurement Violations

Serbia's State Auditors, DRI, said public procurement irregularities in 2011 were worth more than 413 million euro.

Beta, B92
Belgrade

Radoslav Sretenovic, chair of Serbia's State Audit Institution, DRI, said that illegal acts in public procurement, worth 47 billion dinars (about 413 million euro), had been discovered in 122 audited entities in 2011.   

Speaking to parliament's Committee for Finance, to which he presented the reports for 2011, Sretenovic said that Serbia's public debt was more than 15 billion euro in December 31, 2011, which more than exceeded the legally permitted limit of 45 per cent of GDP.

When it comes to public procurements of assets, services and works, he said that negotiating procedures without public bids accounted for 1.7 per cent of the irregularities, while in 3.7 per cent of cases various entities had secured public procurements that were not listed in the annual procurement plan.

Public procurement irregularities in the sector for auditing organizations with compulsory social insurance were worth 33.9 billion dinars (about 298 million euro), he said, adding that in the department for auditing public enterprises, companies and other legal entities, irregularities amounted to 8.8 billion dinars (about 77 million euro).

The State Auditors found that the biggest problems were violations of public procurement laws. According to the 2011 report, state institutions misspent at least €800 million, over 10 per cent of the 2010 budget, mainly through violations of procurement laws.

Sretenovic said that the DRI had filed 26 charges against 30 responsible individuals from two ministries and 16 public enterprises.

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