Auditor files complaints against three companies

The State Audit Institution (DRI) has filed three criminal charges against Serbian Railways, Roads of Serbia and Medijana for illegitimate spending of funds. Presenting the report on review of the 2010 budget balance sheet bill, DRI President Radoslav Sretenovic said it was determined that, when it comes to the Serbian Railways, 331 persons, who were not employed in the company, used recreational holidays, for which they had received money from the company's account, i.e. a total of RSD 4.19mn. Auditor files complaints against three companies He also added that the company had paid dental bills for employees, members of their families and pensioners, although the services are exempt under the Law on Social Security. “Therefore, damage worth RSD 17 million was incurred to the company,” the DRI president stressed. When it comes to Roads of Serbia, it was determined that RSD 158mn of tolls and charges for road use were not paid since 2008. There were also irregularities in the implementation of the Public Procurement Law, since the company did not launch the procedure of public procurement for procurements worth RSD 34bn and instead hired Nibens Group companies for repair and maintenance of roads. “As for the Nis-based company Medijana, court proceedings were launched four months ago due to embezzlement of 45 tons of diesel fuel,” Sretenovic said. Out of 47 audits that the DRI performed in 2011, only two were positive and the DRI had reservations in 39 cases. “The opinion was not given in case of six audit subjects due to lack of inventory, discrepancies between subsidiary ledgers and records and the main ledger, discrepancies in analytics and synthetics, discrepancies in claims and debts and DRI’s inability to obtain enough of other evidence to form an opinion,” the DRI president explained. He added that the subjects of the audit had 45 to 90 days to remove all irregularities. Radoslav Sretenovic (Beta) B92 Beta

Auditor files complaints against three companies

He also added that the company had paid dental bills for employees, members of their families and pensioners, although the services are exempt under the Law on Social Security.

“Therefore, damage worth RSD 17 million was incurred to the company,” the DRI president stressed.

When it comes to Roads of Serbia, it was determined that RSD 158mn of tolls and charges for road use were not paid since 2008.

There were also irregularities in the implementation of the Public Procurement Law, since the company did not launch the procedure of public procurement for procurements worth RSD 34bn and instead hired Nibens Group companies for repair and maintenance of roads.

“As for the Niš-based company Medijana, court proceedings were launched four months ago due to embezzlement of 45 tons of diesel fuel,” Sretenović said.

Out of 47 audits that the DRI performed in 2011, only two were positive and the DRI had reservations in 39 cases.

“The opinion was not given in case of six audit subjects due to lack of inventory, discrepancies between subsidiary ledgers and records and the main ledger, discrepancies in analytics and synthetics, discrepancies in claims and debts and DRI’s inability to obtain enough of other evidence to form an opinion,” the DRI president explained.

He added that the subjects of the audit had 45 to 90 days to remove all irregularities.