For years in loss, KLSH: Albanian Railways before a sharp liquidity crisis
Government payments as subsidies are the only ones that have kept the Albanian Railway from declaring bankruptcy.
The High State Control judges that the payments made to the company, which went for salaries or other expenses related to transportation, have created a confusing situation.
Currently, the railway transport in the country is very limited, while the only project that can give optimism is the rehabilitation of Tirana-Durra and the extension to Rinas, which is expected to be completed next year.
The auditors' report notes that for every lek spent, the Albanian Railways has always managed to get less, thus marking deepening losses.
"The performance of the economic-financial indicators related to the realization of the actual budget of the company is not satisfactory and there is room for improvement, since for every lek spent, according to the audited years, an income was obtained: 2019 of 0.89 lek, 2020 of 0.79 allek, 2021 of 0.94 allek and for 2022 an income of 0.99 allek.
The ratio of short-term liabilities/capital for the year 2019 is presented at 1.5%, for the year 2020 it is presented at 1.22%, for the year 2021 it is presented at 1.31% and for 2022 at 1.45%. "Hekurudha Shqiptare" JSC has the risk of insufficient liquidity.
If the company would calculate the penalty of foreign railways and if no subsidy from the state budget would be opened, it would lead to an even higher negative result for the exercise years", the report states.
The same underlines that the performance of economic and financial indicators for the last years 2019, 2020, 2021 and 2022, reflects a liquidity crisis as the company has arrears to third parties such as short-term and long-term loans, for principal and interest, purchase invoices, etc. ., in the amount of 3.87 billion ALL.
"In the opinion of the audit group, the company "Hekurudha Albanian" sh.a Durrës is in a state of bankruptcy. MIE and MFE have used the subsidy as the only instrument to avoid announcing the bankruptcy procedures of the Company HSH sha.
The actions above are not in accordance with the laws on the budget of the respective years as the Ministry of Finance and Economy (General Directorate of the Treasury), the Durrës Treasury Branch, the Ministry of Infrastructure and Energy (the Directorate of Budget and Financial Management), with their actions or inactions have created a confusing and unclear situation for the allocation and use of the subsidy by the Albanian Railways, creating for this company the opportunity to use this subsidy for salaries and social security), thus changing the destination of this spending as the only instrument to not announce the bankruptcy procedures of the Company "Hekurudha Shqiptare Sh.a Durrës, as the Company is currently facing a sharp liquidity crisis", says the report./MONITOR