Monday, 19 August 2019

NKÚ unveils suspicious two-billion-crown defence spending

18 November 2015

Prague, Nov 16 (CTK) - The Czech Supreme Audit Office (NKU) has uncovered the Defence Ministry´s breach of budgetary discipline worth 2.2 billion crowns, mainly in the financing of ammunition dumps protection, it announced in a press release on Monday.

The inspection focused on the ministry´s spending on catering, cleaning, dormitories and ammunition dumps protection in 2009-2014.

The ministry paid 5.3 billion crowns for the above services. Out of the sum, the inspectors checked the spending of 4.7 billion.

"The inspectors found out that the management of the relevant purchases did not work, which, combined with frequent organisational changes, resulted in a number of flaws in public procurement and in signing of disadvantageous contracts," the NKU report says.

It mainly criticises the public orders concerning the protection of ammunition dumps.

The ministry expediently placed these orders with a single supplier in tenders closed to the public. In addition, the ministry pledged to buy the necessary protective technologies gradually in instalments, though the law does not enable it.

"In connection with the protective services, the ministry´s breach of the budget discipline amounts to 2.1 billion crowns," the NKU wrote.

Mistakes have been found in the public procurement concerning catering and the operation of military dormitories.

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