In 2011 and 2012, costs of external legal and consulting services for ministries exceeded 2010 expenses by 90 %
Press Release – August 12, 2013
The Supreme Audit Office (SAO) audited the Ministry of Industry and Trade, the Ministry of Regional Development, and the Ministry of the Environment and scrutinized purchases of materials made within years 2011 and 2012. Auditors aimed at costs of professional publications and periodicals, office furniture, staff training courses, translators’ services, and external legal and consulting services. Expenditures in the amount of CZK 182.9 million were scrutinized.
Within the audited period, costs of external legal and consulting services of the ministries increased considerably, that is by tens of per cent. During period 2010–2012, the cost increase reached 67 % at the Ministry of Industry and Trade, 44 % at the Ministry of Regional Development, and 91 % at the Ministry of the Environment. Auditors found the highest increase of costs of external legal and consulting services at the Ministry of Industry and Trade, which spent CZK 42 million on the services in 2011 – more than double the sum paid in 2010.
For example, the Ministry of Industry and Trade paid CZK 239,000 to an external law agency for drafting a factual legal act in spite the Ministry’s environmental department had 24 employees, who were responsible for such agenda. The Ministry of Industry and Trade also paid CZK 2.1 million to a company, which organized an open competition to select directors of six test institutes. At the same time, there were 18 employees at the personal department of the Ministry, who should have organized the competition themselves.
The Ministry of Regional Development hired an external law agency to prepare three-pages long auditor’s opinion for CZK 240,000. Later, the Ministry paid CZK 1.1 million for preparations of guidelines, conceptual propositions, and methodical materials related to the topic of centralized public ordering. But at the same time, the Ministry’s organisational structure included two departments with 48 employees working on the same agenda.
The Ministry of the Environment hired an external company to elaborate a scheme of waste management in the Czech Republic, which cost CZK 1.6 million. However, the Ministry should be the only guarantor of waste management in the Czech Republic and there were 17 employees at its department of waste management at the time.
The SAO calls attention to a ruling of the Constitutional Court of the Czech Republic1 , which stated that the State should not pass its duties to private subjects in case there are adequate organisational units, which have sufficient financial and personal sources and are funded from the State budget. The audited ministries use external legal and consulting services in spite having professional departments for dealing with the same agenda.
Auditors also scrutinized unit prices of the purchased office stationery and furniture as well as the telecommunication services. While the average cost of one office chair purchased in 2012 by the Ministry of Industry and Trade amounted to CZK 1,950, the average purchase price of one office chair was CZK 6,232 at Ministry of Regional Development. The Ministry of Regional Development also paid 50 % more for copier paper: In 2011, the Ministry of Regional Development paid CZK 106 for a ream, while the Ministry of Industry and Trade paid CZK 63 and the Ministry of the Environment paid CZK 67 for a ream on average.
During the period 2011–2012, audited ministries decreased costs of telecommunication services. Highest prices were paid by the Ministry of the Environment, which paid on average CZK 21,000 for each employee a year. In comparison, the Ministry of Industry and Trade paid on average CZK 10,500 for each employee at the same time. At the Ministry of Regional Development, most employees use company mobile phones: over 72 % of employees have company mobile phones at their disposal.
For further details about auditing operation No. 12/32 (in Czech only), see the following link: http://www.nku.cz/assets/media/informace-12-32.pdf.
1) Ruling of the Constitutional Court of the Czech Republic No. I ÚS 2929/07