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September 19, 2021
ECONOMY FINANCE&BANKING

Court of Auditors president says excess of feasibility studies, points finger at relevant ministry too

President of the Court of Auditors Nicolae Vacaroiu said on Saturday that there is an excess of feasibility studies in the country’s administrative and territorial units, and that these studies do not end in hard fact projects.

“We are witnessing an excess of feasibility studies. This wouldn’t be bad if they resulted in approved projects, but regrettably, many of the feasibility studies don’t turn into projects, and in my opinion the Ministry of Regional Development and Public Administration is also to blame in this regard, as it should permanently discuss with the budget managing entities in administrative-territorial units, explain that these feasibility studies should be weighed carefully when deciding to work them out,” Vacaroiu said in Parliament, after the 2016 draft budget of the Court of Auditors was presented to the joint Budget and Finance Committees.

Vacaroiu said that the Court has verified approximately 1,000 out of 2,681 of administrative and territorial units in the country, and the amount invested in such studies was 30 million euros.

“This is an enormous amount. (…) They pick three to four subjects, the Local Council decides the feasibility studies to be worked out, they often directly contact – although they should resort to tendering – the companies that develop feasibility studies, the money is paid out, but this is as far as they go. So it’s a net loss for the entity’s budget,” said Vacaroiu.

The president of the Court of Auditors underscored that the institution found that additional revenues to collect and the financial damage to the state budget in 2014 amount to about 1.2 billion euros, in addition to the violation of legal provisions regarding the financial accounting irregularities, which are also estimated at about 10 billion euros per year.

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