The government has decided to audit itself, the Constitutional Court approves

In an unprecedented and paradoxical decision, the Constitutional Court today upheld a decision that allows private companies to audit local government finances.

The law in question was appealed by the Supreme State Audit, but was rejected by today's decision.

What does Article 50 of the Law on External Audit say?

According to the law, KLSH and the Ministry of Finance would jointly audit the finances of 61 municipalities in the country, but the law provided that for some of the municipalities to be audited, private auditors would be hired.

This law in its form was attacked by KLSH in the Constitutional Court based on two arguments.

A - The Ministry of Finance is an entity that is audited by KLSH

B - The involvement of private companies is an unprecedented case, because money is given from the state budget to control local government finances by private companies.

From the law left in force today by the Constitutional Court there are only two beneficiary parties.

One is private companies that will benefit from the state budget to audit local government finances, and the other is government-affiliated municipal officials, who will be advocated by representatives of the Ministry of Finance.

Today's decision of the Constitutional Court, which has rejected the arguments of KLSH for the law in question, is an unprecedented case. Below is the whitewashed decision of the Constitutional Court on the law 'On local government finances'.

Decision of the Constitutional Court

The Constitutional Court of the Republic of Albania, considered in the plenary session of 23.02.2021, the case with the request of the President of the Supreme State Audit, with the object: “Repeal, as incompatible with the Constitution of the Republic of Albania, of article 50, points 1 and 2, of law no. 68/2017 "On local government finances". Suspension of the implementation of article 50, points 1 and 2, of law no. 68/2017 "On local government finances", until a final decision is taken by the Constitutional Court ".

At the end of the review, the Constitutional Court,

VENDOSI:

- Rejection of demand.

The final decision will be declared reasoned within the legal deadlines provided by law no. 8577, dated 10.02.2000 "On the organization and functioning of the Constitutional Court of the Republic of Albania", as amended.

Neni 50 i ligjit mbi Auditimin e Jashtëm, që mbetet në fuqi pas vendimit të sotëm të Gjykatës Kushtetuese

Neni 50

Auditimi i jashtëm

Veprimtaria financiare dhe zbatimi i buxhetit vjetor të njësive të vetëqeverisjes vendore u nënshtrohen çdo vit auditimit të jashtëm.

Auditimi i jashtëm realizohet nga Kontrolli i Lartë i Shtetit ose auditues të tjerë ligjorë.

Ministri i Financave dhe Kryetari i Kontrollit të Lartë të Shtetit përcaktojnë me udhëzim të përbashkët rastet kur auditimi realizohet nga auditues të tjerë ligjorë, si dhe procedurat, afatet dhe standardet e auditimit të jashtëm nga këta auditues.

The mayor of the local self-government unit submits the external audit report to the council of the local self-government unit as part of the consolidated annual report on the implementation of the local budget. A copy of this report is sent to the Supreme State Audit and the Ministry of Finance.

For all external audit reports, performed by the Supreme State Audit or other statutory auditors, the head of the local self-government unit prepares an action plan for the implementation of the audit report recommendations and reports regularly to the unit council on progress. in its implementation./ Gazeta Dita

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