SAO: Evidently cost-ineffective projects authorized as well
Press Release on completion of the auditing operation No. 06/18
This time, the SAO auditors took aim at controlling the use of financial resources provided by the “Program of Selected Railways Reconstruction & Modernization”. The audited period was defined by the year 2004 and the fall of 2006, the previous periods were included only in case of factual context. The audited bodies were Ministry of Traffic, State Fund of Transport Infrastructure (SFTI), Railway Infrastructure Administration (RIA), and its constitutional parts within its framework – Civil Engineering Administrations of Olomouc, Plzeň and Praha.
During the audited period, 80 projects altogether were either entered or finished. 38 projects, with the total costs almost 38 billion CZK, were chosen for the audit operation.
When making decision whether to execute railway reconstruction and modernization projects, basic criteria did not always include social-economical effectiveness. “The project choice was carried out in accordance with criteria that had not been fixed. In total, 20 investment ventures were authorized without reasoning in spite they were assessed as unsuitable in terms of effectiveness. Another 15 projects were not rated on the basis of efficiency at all”, said Frantisek Dohnal, president of the Czech SAO.
Most imperfections in rating the offers and choice transparency were found when controlling placing public order for projects documentation and construction suppliers.
“Within the selected set, cost-effects with more than half of the projects were rated only on the partial criteria basis, which did not refer to the offer’s subject-matter. Some assessments of the offers were based on partial criteria, which had not been included in the tender conditions. On the other hand, contestants who had not met eligibility required for the contest were not avoided”, said president Dohnal.
The auditing operation was included in the Annual Audit Plan of SAO for the year 2006 under No. 06/18. Jiří Adámek, Member of the SAO, controlled the auditing operation and drew up the conclusion as well.
Radka Burketová
Press Speaker
Supreme Audit Office