Zvecan misuse Kosovo budget, a litre of oil buys 1.27 euros

Kosovo's north has often been reported as a country where oil costs cheaper than in other Kosovo regions. A review of Kosovo's “Justice” has found that oil in four Serb majority municipalities is sold below 0.70 euros.

But, the National Audition Office says the Zvecan municipality pays a litre of oil to 1.27 euros.

For fuel supply, by 2015 municipalities have had two contracts covering the period until October 2016. According to these contracts, the price of fuels has been $1.27/L, respectively,”, says the report of the National Auditing Office for the Zvecan Community.

The audience has even found that the Zvecan municipality has considered stock prices.

On 03.10,2016 municipalities have signed the framework contract for a (1) year at the price of $1.13m/L, for all types of fuels. In the contract, article 4.3 says price change should also be taken into account according to bereza”, says the Auditor report.

According to the general audience, the municipality of Zvecan has a problem with tenders. The report cites the contract with the physical security of objects for the needs of the Office for Communities, where this municipality has appointed the same official for the chairman of the tender assessment commission and for contract management.

This decision is contrary to Article 62.3 of the Public Procuration Guide 7 which says the chairman of the assessment commission cannot even be project manager”, the report says.

Zvecan also has problems with realising the reform budget, stressing that part of the surplus was out of control of the municipality, while much of the spending -- nearly 900 thousand euros -- has taken place in the last three months of the year.

The audience has found that paying subsidies for NGO “Santa Marija”, worth 11,950, was made by the category capital investments.

Also reportedly Zvecan has not yet managed to provide internal audit services, and these services have not been performed by any other organisation.

The report has found that this municipality is not implementing the Law on Property Tax and the Construction Law as two main sources of revenues. As a result, it has failed to get in from property tax, construction permits, the exploitation of public property by citizens, or on other grounds, so the level of private income collection is also symbolic.

Subsequent administrative tax signatures are not already deposited in bank accounts, while evidence is kept manualally”, the report says.

The Zvecan municipality is said to have not yet appointed officials for registering assets and has taken no action related to asset management.

Also, this municipality on two occasions in the “contract, maintenance and cleaning of roads, cleaning channels, emptying waste from containers, and pruning trees along local roads” worth 3,766, and contracting “Fornisation with medical drugs --” worth 9,963% -- has entered financial obligations, signing contracts at the end of the year (day 22nd and December 23rd 2016) without commitment.

According to accession reports and accepted bills, both contracts were completed on the day of signing the contract.

Only 1/3 of the recommendations were under way in implementation, while the overwhelming portion of them had not been addressed at all by management.

This, for the reason that the municipality has failed to pay attention to issues raised by auditing and implementation of the general audience's recommendations”, says the report.

In the confirmation letter, the mayor of Zvecan's municipality has agreed with the audience's findings and has given no comment.