According to the Supreme Audit Office, several timber delivery contracts are disadvantageous for the Military Forests and Estates
Press release
June 4, 2007
The Supreme Audit Office (SAO) is about to release an audit report about management of the Military Forests and Estates of the Czech Republic, s. p. e. The audit showed inadvisability of several timber delivery contracts.
The audited bodies were Ministry of Defence (MD) and Military Forests and Estates of the Czech Republic, s. p. e. (MFE). Auditors focused on years 2004 and 2005, including associated data from the previous time and the following period.
“Timber trade payables with more advantages on the buyer’s side are not equitable. In case of some of the contracts, scoring the timber in terms of quality and amount was only the buyer’s privilege. When analyzing the invoices, it was difficult to identify the exact character or the scope of the ordered operations. In this manner, subcontractors workings worth over CZK 5 million were not properly evidenced,“ said the president of SAO, František Dohnal.
The audit report also paints that MFE booked private car trips to workplace as official trips and paid out mission allowances, in spite the law of journey of duty compensation does not allow such practice. MFE introduced an integrated managerial system, which poorly focused on financial control, on analysing the insufficiencies, and expedience and economy while ensuring state demands. MD performed only preparative auditing of the public service, but during the audited period, they did not control whether the given conditions for drawing the subsidies were kept. “The Ministry did not predetermine criteria for evaluation of economical, efficient, and effective public administration for granting subsidies,“ said the president of SAO.
The auditing operation was included in the Annual Audit Plan of SAO for the year 2006 under No. 06/38. Ludmila Brynychová, Member of the Board, controlled the auditing operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office