Audit Shows Lukač Squandered Budget Funds

The Office for Audit of Institutions in the Federation of Bosnia and Herzegovina issued a qualified opinion for the Federal Ministry of Interior – Federal Police Administration for 2013, reports BH news agency Patria.

The audit of financial statements found that the Federal Police Administration did not act upon recommendations related to the procurement of goods and services in accordance with the provisions of the Law on Public Procurement of Bosnia and Herzegovina, the Rulebook on the Direct Agreement Procedure, and the Procedures for the Procurement of Goods, Services, and Works.

ALLOWANCES FOR SEPARATE LIVING

An insight into the calculation of employee expense allowances revealed that the director and 50 other employees of the Administration exercise the right to an allowance for living separately from their families and an accommodation cost allowance, of which 46 are police officers. It was established that based on a Decision dated 17.05.2011, a police officer appointed as the Director of the Administration, Dragan Lukač, was granted the right to a rent allowance, accommodation cost allowance, and an allowance for living separately from his family in the amount of 600 KM, based on the Decree on Amendments to the Decree on Allowances Belonging to Members of the Government of the Federation of Bosnia and Herzegovina and Their Advisors That Do Not Have the Character of Salary.

- Given that the Director of the Administration is not a member of the Government of the Federation of Bosnia and Herzegovina, we could not confirm the justification of the established right. Based on this, the calculation and payment of these allowances for the first nine months were made in the amount of 5,400 KM. On 21.10.2013, a new Decision was adopted, so the calculation was made from 01.10.2013, and for the last three months, 1,758 KM was paid.

- Due to the aforementioned, as well as the previous year, we cannot confirm the justification of the calculation and payment of accommodation cost allowances and separate living allowances in 2013 to the police officer appointed as the Director of the Administration, in the total amount of 3,558 KM – the audit states.

Although the Federal Minister of Interior, Predrag Kurteš, was supposed to issue an individual decision, by the conclusion of the audit, no decision establishing the right to an accommodation allowance and separate living allowance for the Director of the Administration was presented.

The audit found that the procurement plan for fuel, office supplies, food products, etc., does not contain clearly and precisely defined types and characteristics of these procurements, and that the Administration concluded a certain number of procurement contracts with suppliers and conducted direct agreements for the procurement of goods and services before the Procurement Plan for 2013 was adopted, which was also noted in the audit report of the previous year.

The Office for Audit concluded that the procurement of goods, services, and works must be fully conducted in accordance with the provisions of the Law on Public Procurement of Bosnia and Herzegovina, the Rulebook on the Direct Agreement Procedure, and the Procedures for the Procurement of Goods, Services, and Works.

EQUIPMENT PROCUREMENT

The Director of the Administration, Dragan Lukač, signed a contract for the delivery of police equipment worth 198,619 KM including VAT (16.09.2013), and by the end of the year, equipment worth 7,020 KM was delivered. By the conclusion of the audit, although more than 180 days had passed since the signing of the contract, it was not presented that the remaining police equipment from this supplier had been delivered.

- We note that as of 31.12.2013, receivables for prepaid goods - advances from the company „SHOT“ doo Zenica in the amount of 170,221 KM were recorded.

Due to these omissions, as well as the same situation with the company KM TRADE Visoko, with which the Administration has had unfinished equipment procurement dealings since 2010, the auditors recommended that it is necessary to decisively determine the delivery deadline, and in case of non-fulfillment, take established measures to protect public funds.

- It is necessary to review the documentation related to the implementation of the Annex to the Contract for the Sale and Delivery of Goods (number: 09-10/1-14-2-1927) dated 04.10.2010 and the Contract for the Sale and Delivery of Goods (number: 09-10/1-14-2-2720) dated 29.12.2010, concluded with „KM TRADE“ doo Visoko, and in accordance with the findings, undertake appropriate activities, particularly regarding the return of paid advances.

Incidentally, Lukač paid KM TRADE from Visoko more than 600,000 KM for various equipment procurements from 2010 through 2013, without all the equipment being delivered.

As stated in the audit, out of a total of 32,144,537 KM spent, expenditures for gross salaries and allowances were reported in the amount of 21,804,754 KM, while approved in the amount of 22,078,338 KM, representing 98.76% of approved funds. These expenditures are higher by 327,247 KM compared to the previous year, while the number of employees is lower by 14.