770 million euros in economic damage and negative effect on the budget from the institutions' irregularities

Public institutions have caused the state budget an economic damage of 13 million euros in income and expenses, while the negative effect due to irregularities is much higher.

According to the calculations made by the supreme audit institution, these irregularities had a negative effect of 88.5 billion lek, or 756 million euros. In total, the damage from these two elements is about 770 million euros.

KLSH has clarified that economic damage refers to the obligation of monetary compensation of an individual or entity that is caused to the audited state entity in relation to actions or omissions in violation of financial discipline and the relevant regulatory framework.

While the negative effect on the performance of the subjects under audit refers to the negative effects found in the administration of public funds and the management with economy, efficiency and effectiveness of public funds.

Areas with the highest violations

If we refer to the data published by the High State Control, the first area where there was a violation of income and categorized as economic damage is the sale, purchase and leasing of state property.

Meanwhile, when it comes to economic damage in expenses, the area that holds the record is that of investments, followed by salaries, insurance and bonuses.

Even in the negative effects due to irregularities, the area with the biggest violations in the revenue group is the sale, purchase and leasing of state property, followed by the implementation of tax legislation in local government.

In the group of expenses, the "other" category holds the largest share, followed by investment expenses and after that operational expenses.

Violations found by the State Supreme Audit Office do not include all public administration institutions, but only those that have been audited according to the foreseen program. Referring to the annual report during 2022, audits were conducted in 205 entities.

They have included central government institutions: ministries and agencies including: central and regional directorates depending on them; local self-government units: counties and municipalities; institutions that administer special funds: ISSH and FSDKSH, independent institutions; joint stock company with state capital in which the state has over 50% of the shares, or projects with foreign financing.

According to the HSC in the institutions audited during the period January - December 2022, the HSC has addressed a total of 5,420 recommendations, of which: 52 proposals for legal improvements; 3,283 organizational measures; 1,047 disciplinary and administrative measures, 352 measures for compensation and 686 measures for negative effects on the budget./Monitor