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Weaknesses found during the audit at MFAEI, discussed within the Parliamentary Committee

  • 01.12.2021
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The public procurement process and the use of financial resources within the system of the Ministry of Foreign Affairs and European Integration (MFAEI) in 2019-2020 were affected by some deficiencies and non-compliances. The situation was conditioned by the non-compliance with the regulatory provisions within the public procurement procedures and by the low level of internal managerial control over the processes related to public procurement, are the conclusions of the auditors of the Court of Accounts of the Republic of Moldova (CoARM).

In this context, on December 1, the CoARM presented to the Parliamentary Public Finances Control Committee (PFCC), the Audit Report on the consolidated financial statements of MFAEI concluded on December 31, 2020 and the Compliance Audit Report on the public procurement within the MFAEI system during 2019 - 2020.

The CoARM’s team informed the deputies about the most significant findings that were the basis for issuing the qualified audit opinion, which requires the attitude of the MFAEI and its subordinate institutions.

Deficiencies and non-compliances in the management of financial means and public patrimony by MFAEI and its subordinate institutions, in 2020, generated errors amounting to 5.3 million lei, having an impact on the reported financial statements.

In 2020, two diplomatic missions and consular offices admitted the increase of receivables by 2.2 million lei, being paid in advance 3 cars. The situation has led to the immobilization of public financial resources for an indefinite period. At the same time, following the sale of 3 means of transport, revenues of 106.7 thousand lei were obtained, in the Financial Report being reflected only 52 thousand. lei.

Also, in some subordinated institutions, non-compliances were found in the organization of trips in interest of work, in the calculation of the allowance of seconded persons and their family members. In this context, the compliance of the use of means of transport was affected and the principle of transparency of the use of budgetary resources was not respected.

During the compliance audit on public procurement, it was mentioned that the public procurement process and the use of financial resources within the MFAEI system in 2019-2020 were affected by some deficiencies and non-compliances. The situation was conditioned by the non-compliance with the regulatory provisions within the public procurement procedures and by the low level of internal managerial control over the processes related to public procurement.

In 2019, the central apparatus of the MFAEI made acquisitions in a total value of 9 million lei, being concluded 173 contracts, and in 2020 - 133 contracts were concluded in a total amount of 10.5 million lei. The largest share in total purchases is held by low value purchases (56% in 2019 and 33% in 2020).

Public procurement has been affected by some irregularities and deficiencies that have negatively affected the budget estimation, planning and execution processes. As a result, the process did not fully meet the principles of legality, transparency, efficiency and economy.

The CoARM’s auditors pointed out that, in 2019, the MFAEI central apparatus concluded with 58 contracts of low value more, in the amount of 2.2 million lei, compared to the acquisitions included in the Annual Procurement Plan, also in 2020 with 18 more contracts, amounting to 0.5 million lei.

At the same time, the audit highlighted the fact that some diplomatic missions and consular offices drew up contracts for renting residences without indicating the rented area.

The report also states that in 2020, diplomatic missions and consular posts have concluded several service contracts with consular assistants (translations and secretarial) who are first-degree relatives of diplomats and employees of diplomatic missions and consular offices.

In this context, it is noted that the institutions of the diplomatic service do not have annual public procurement plans to substantiate the estimate of procurement needs.

Thus, it was certified to make advance payments in the amount of up to 100% for the purchase of means of transport purchased in 2019 and 2020, as well as for repairs. The audit shows risks of non-transparency of public procurement in this context and the possibility of favoring certain economic operators.

The chairwoman of the Public Finance Control Committee, Tatiana Cunețchi, reiterated the responsibility of the public institutions regarding financial discipline. "Being a budgetary institution, the Ministry of Foreign Affairs and European Integration must use public money transparently and with maximum efficiency," highlighted Ms. Cunețchi.

Finally, the Court of Accounts concluded that the process of conducting public procurement was deficient at all stages, characterized by the imperfection of the internal regulatory framework for public procurement exempted from the Law on Public Procurement, including, taking into account the specific activity of diplomatic service institutions.

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