Accounting of the LOM PRAHA s. e. lacks demonstrativeness
Press Release – December 12, 2007
The accounting of the LOM PRAHA state enterprise was not demonstrative, as no law-abiding inventory was accomplished in 2005 and 2006. This was the audit conclusion drawn by auditors from the Supreme Audit Office (SAO) who focused on management of the state enterprise and the contractual relations with the founder, the Ministry of Defence.
The management of the LOM PRAHA s. e. was affected negatively by lack of any long-term policy of the MoD and poor information about the ministry’s intent to stabilize a further development of the defence department and the governed state enterprise. Most of the production will not be suitable for the Army of the Czech Republic.
„From 2004 to 2006, the state enterprise sold out 45 208 m2 properties worth almost CZK 60 million. In two cases, the lands were sold for more than CZK 2 million below the cost defined by the expertise, which violated the founder’s requirements. In one case, the property had been sold even before the founder’s approval was granted,” said František Dohnal, the president of SAO.
The Ministry of Defence (MoD) should have updated the data in the deeds of foundation without delay and ordered an inventory of the designated property so that it depictured the real state of it. The ministry took measures to remedy the poorness of the founder’s deeds, which had been collocated at the registration courts.
The auditing operation was included in the 2007 Audit Plan of the SAO under No. 07/03. Zdeněk Brandt, Member of the SAO, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office