The Czech Consolidation Agency did not capitalize on its resources
Press Release – July 8, 2009
From October 2008 to April 2009, auditors from the Supreme Audit Office (SAO) performed an audit that focused on the state property managed by the Czech Consolidation Agency before its phase-out on December 31, 2007, and during the transition of the title towards Ministry of Finance in the year 2008.
“The auditors from the SAO revealed that the Agency had seriously violated the Accountancy Accounting Act when enumerating the property and undervaluing the shares. Due to the violation against the Accounting Act the Ministry of Finance shows a higher value of the consigned property“, said president of the SAO František Dohnal.
Before the transition of the title, the Agency failed to capitalize on their claims, ownership interests, and valuables. In case of the consigned claims, the Agency was obliged to cede the claimed amount to the assignees, but auditors revealed that the organisational counsellor significantly undervalued those claims. The Agency failed to demand a fair equivalent of the share values and did not make any inquiry into the value of its shares before transferring them.
“The Ministry failed to control the Agency’s activities in 2007, in spite of the fact that a consistent auditing activity had already been required by the SAO auditors in the conclusion of the audit No. 03/11“, said Dohnal.
The auditing operation was included into the 2008 Audit Plan of the SAO under No. 08/31. Zdeňka Profeldová, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.
Radka Burketová
Press Speaker
Supreme Audit Office