The Land Fund sold immovable property below the highest price attainable
Press Release – December 3, 2008
The auditors from the Supreme Audit Office (SAO) performed an audit that focused on state’s real estates managed by the Land Fund of the CR (LF CR) and property sold from 2004 to 2007. Among the audited bodies were the regional departments of the LF CR in Mladá Boleslav, Šumperk, Chomutov, České Budějovice, Havlíčkův Brod, Tachov, and in Jičín.
The Land Fund of the Czech Republic (LF CR) negated the principle of the tender, i.e., to sell the immovable property at the highest price attainable, when applying an across-the-board policy in calling a tender comprising three rounds and in conducting the tender evaluation also comprising three rounds, in the case of only one tender participant. In certain cases it failed to determine correctly the bid price of the real estate concerned.
“Till the end of 2007, the LF CR failed to settle the claims of legitimate claimants in respect of transfers of land plots of total worth of CZK 1,262.9 million – that is 16.47 % of all the claims on record”, said president of the SAO František Dohnal.
Until mid-April 2006, the LF CR continued to give preference to the offer of agricultural land plots pursuant to the stipulations of Act No. 95/1999 Sb., on the conditions applicable to the transfer of agricultural land and forests from state ownership to the ownership of other entities, over and above the public offer of such agricultural land plots in settlement of the restitution claims of legitimate claimants. Not even after 17 years has the restitution process been brought to completion.
“The LF CR was receiving registrations to purchase agricultural land plots past the pre-set deadline, failed to produce debt inventories and concluded a purchase agreement without having received at least an advance payment toward the purchase price. In sales of property, the LF CR failed to adopt the same procedure in all cadastral areas – no items were offered for sale yet in certain cadastral areas”, said Dohnal.
The auditing operation was included into the 2008 Audit Plan of the SAO under No. 08/12. Zdeňka Profeldová, Member of the SAO Board, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office