Banner

Published Follow up Audit Report on Register on Concession Contracts and Revenues of the Budget of Montenegro from Concluded Concession Contracts for the Usage of Natural Wealth

Podgorica, 16th May 2016 – According to Annual audit plan, the State audit institution has performed the follow up Audit Report on Register on Concession Contracts and Revenues of the Budget of Montenegro from Concluded Concession Contracts for the Usage of Natural Wealth.

The subject matter to the audit is control over implementation of the audit recommendations given in the final audit report on Revenues of the Budget of Montenegro from Concluded Concession Contracts for the Usage of Natural Wealth and final audit report on Register on Concession Contracts.

The given audit covered the following audited entities: Commission for concessions, Ministry of finance, Ministry of economy, Ministry of transport and maritime affairs, Water directorate, Port administration, Property Administration, Real estate administration, Department of Public revenues and Inspection Directorate.

Based on conducted follow up audit and determined factual state, the competent Auditing Board of the SAI comprising of the following members: Branislav Radulović, PhD (Member of the Senate – Head of Auditing Board) and Mr. Nikola N. Kovačević (member of the Senate – member of the Auditing Board), has determined that taking into account the activities which the audited entities conducted in order to implement recommendations of the SAI, the progress was made in the area of awarding, calculating, collecting and controlling concessions for the use of natural wealth. The register of concession contracts is still not providing a full picture of active concession contacts as a result of failure to inform on expiry of the concession contracts. There are still some issues, related to timely submission of the concession contracts and related changes made by the Grantor.

The competent Auditing Board draws attention to the situations when the exploitation was performed without calculation of the concession fee (for the locations as “Midova kosa” and “Čeoče“). The competent authorities should act in line with the principles of good governance and should overcome the shortcomings of the legal and institutional framework.

In addition to general law (Law on Concessions), there are special laws (Law on forests, the Law on games of chance) governing the issue of concessions, so there is a problem of mutual correlation between these laws. It is vital to adopt a Law on public- private partnership, which is now in a draft form and which, among other things, regulates the area of concessions and ensures better control in this area.

The audited entities, which did not implement or partly implemented the audit recommendations should conduct the activities on implementation of the given audit recommendations, so that the irregularities found in area of concession would be eliminated. The audited entities should inform the SAI on implementation of these recommendations in the following six months.

The SAI will submit the final follow up Audit Report and inform the Parliament and Government on irregularities and shortcomings in area of concession, especially on situations when the exploitation was performed without the calculation of the concession fee.

The Final follow up Audit Report on Register on Concession Contracts and Revenues of the Budget of Montenegro from Concluded Concession Contracts for the Usage of Natural Wealth has been published at the web site of the State audit institution.

Excerpt from the Follow up Audit Report on Register on Concession Contracts and Revenues of the Budget of Montenegro from Concluded Concession Contracts for the Usage of Natural Wealth

Follow up Audit Report on Register on Concession Contracts and Revenues of the Budget of Montenegro from Concluded Concession Contracts for the Usage of Natural Wealth (mne)