National Property Fund Resources Provided for Disposal of the Old Ecological Burdens
Press release on completion of the auditing operation No. 05/11
The aim of the auditing operation “National Property Fund Resources Provided for Disposal of the Old Ecological Burdens” was to examine the management of funds dedicated for the preparation and implementation of the projects resulting from ecological commitments of the state. The audited period covered the years from 2001 to 2005. The auditing operation was managed by Mr. Jiří Kalivoda, Member of the SAO.
The SAO audited the same matter for the third time. This auditing operation was a follow-up to the earlier audits 97/21 and 00/25. New owners of the privatised former state factories could claim to cover their expenses for disposal of the old ecological burdens made by the previous state keeper. The Czech Government started to guarantee costs of such disposals from 1991. The maximum amount of compensation was derived from the value of the privatised firm – not from the extent of assessed or expected ecological burdens. The intention to provide guarantees more precisely on the level of approved remedy projects has not been fulfilled even after adoption “The principles of compensation of ecological commitments created before privatisation”, which were approved by the government resolution in 2001. Though the amount of guarantees includes, in current ecological contracts, minimally up to CZK 155.5 billion. And the government pledge for landscape revitalization after mining amounts to a further CZK 36.2 billion.
It follows from the audit findings that the National Property Fund expected an actual exploitation of financial resources in 1997 of no more than 25% of total amount of given guarantees. They later increased their estimate to 40% and now, the exploitation reaches 100% unless clearly defined and controllable regulations were laid down. By the audit completion, no conclusive base was available for calculation or at least estimate, how actual drafting of funds might be lesser than the guarantees given in connection with privatisation. A burden of more than CZK 167 billion remains at the state in the current ecological contracts with private entities and in the government’s pledge for mining damages in regions after deduction of already expended funds for landscape revitalization and ecological contracts.
Source: Regular semi-annual information for the Czech government’ members on the situation in contracts and spending of the National Property Fund resources for compensation of ecological commitments after privatisation (during period from 1.1.2005 to 30.6.2005 and totally since the beginning of so called large privatisation).