The SAO revealed conceptual errors in projects aimed at limitation of industrial pollution

Press Release – December 17, 2012


The Supreme Audit Office (SAO) performed an audit of the Operational Programme Environment and focused on funds earmarked for the limitation of industrial pollution and environmental risks within the period 2008–2011. Auditors performed the auditing operation at the Ministry of Environment and the State Environmental Fund of the Czech Republic, which share the responsibilities for the Programme’s management and administration, and provide the projects’ evaluation. The auditors scrutinized 13 beneficiaries of the support amounting to CZK 280 million.

The auditors revealed several conceptual errors, namely in the binding documentation of the Programme, the pre-set indicators, and evaluation criteria defined in the invitations to tenders. In 2009, the Ministry of Environment and the State Environmental Fund adjusted the indicators to comply with the actual Programme developments. However, the indicators did not get better information potential, which was the alleged reason for the adjustments. On the contrary: the SAO concluded that with the adjusted indicators, it was not possible to prove the costs’ effectiveness.

Another conceptual error was detected at projects aimed at pollution informational systems and software applications used for detection of accident risks. In most cases, these projects are prepared by private companies. The private companies do not consult their intentions with the authorities in advance in spite the projects are predominantly applicable within the public service and the state administration. The SAO is suggesting a change to this practice as it is necessary to assign projects according to the actual needs and requests of the departments.

When focused on the beneficiaries, auditors revealed errors as well. For example, the limited liability company ISATech made errors when insufficiently defined the subject of the public contract concerning the purchase of a software tool for assessing risks of a major accident. Another error was made when the company entered a contract worth CZK 6.4 million with a supplier who had failed to submit a complete offer. Based on the audit findings, the SAO notified the appropriate tax administrator of the facts indicating a breach of budgetary good practice.

For further details about the auditing operation No. 12/10, see the following link.

Communication Department
Supreme Audit Office

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