NGO Focus: Corruption Weaknesses in Kosovo Pinpointed Now 24 pages July 2 - 15, 2010 Issue No. 43 www.prishtinainsight.com Price € 1 NEWS EU Pulls Snoop Dogg Asks 15million for Modest Doggy Euro Boro Bag While in Kosovo > page 3 Ramizi Plan After a year of wrangling between the European Commission and the Municipality of Prishtina, the EC has withdrawn a 14.5mil- NEWS lion euro grant to rejuvenate Fight for Chamber the Palace of Youth and Sports, otherwise known as of Commerce Boro Ramizi, and instead will Hots Up spend it in Mitrovica. > page 3 See Pages 2 BUSINESS Tussle over Pension Ghost Workers, Dodgy Tenders Fund Future and a Fire-Engine: Audits Reveal > page 6 CITY Widespread Irregularities Questions Grow over Opera House Auditor General warns ‘poor financial management endangers reforms’ as annual audit reports are released municipalities looked at by reforms in public administration, together can take getting out of > page 8 By Lawrence Marzouk Prishtina Insight – Prishtina, Peja, such as decentralisation and the current situation. Gjakova, Mitrovica and Prizren - changes to public procurement. “In general I think it is impor- he Office of the Auditor FEATURE two had their accounts signed off, He said: “We have made public tant to create good examples and General has published its despite serious concerns, while all the reports on the municipali- best practice notes, but at the same Bekim Fehmiu Tfinancial assessments of the auditors were unable to do so ties and of course the opinions time practical assistance is also Kosovo’s municipalities, some with the others because a lack of given on the quality of the finan- needed.” Remembered publicly owned companies and information and control on spend- cial statements and the way public Prishtina Municpality’s in Kosovo government institutions for 2009, ing. financial management is carried accounts were given an revealing a worrying pattern of Auditor General Lage Olofsson through is a matter of concern. ‘Unqualified Opinion with an > page 12 serious irregularities in procure- told Prishtina Insight that the “The situation in fact endangers Emphasis of Matter’, which means ment, breached contracts, spend- management of funds by munici- the reform under implementation. they were deemed to give a true ing that is unaccounted for and palities in Kosovo was a matter of I will have a discussion with the and fair view despite problems. ignored procedures. concern and warned that the situ- government and other concerned Out of the five biggest city ation was so poor it could derail parties on which measures we continues page 2 Kosovo Pulls Off Its First Mladic Diaries May Sway Balkan Presidential Summit Several Hague Trials Kosovo’s first attempt to host a regional If accepted as evidence, the notebooks ECOSOVO summit is widely seen as a diplomatic suc- written by Ratko Mladic will have a bear- cess, though most analysts describe its sig- ing on seven of the nine trials ongoing When Plastic is nificance more in symbolic than practical before the ICTY, starting with that of terms. Heads of state of four Balkan coun- Mladic’s wartime colleague, Radovan Not Fantastic tries gathered ... Karadzic. news page 4 news page 10-11 > page 18 Y M is supported by: C K 2 July 2 - 15, 2010 news Auditor General: “Poor Financial Management Endangers Reforms” from page 1 who called for an investigation. of irregularities in tenders, includ- The report also found that there Auditors found that the supplier The audit also reveals a series of ing contracts not being awarded to was a ‘lack of transparency, during of fuel had provided it at a higher These problems included the fact irregularities in tenders, from the lowest bidder. the compilation of closed list can- price than other firms in the field, that no funds raised from the one missing documents to overpaid In the case of a road construc- didates, which is mainly made by contrary to the contract, leading to euro entrance fee to Germia Park contractors. It concludes: “The tion project in the Bajram Curri one evaluation member’. a loss of more than 300,000 euro for had been deposited in the munici- noticed deficiencies regarding the neighbourhood of Prizren, the Regarding procurement, it has 2009. Termokos’ arguments that pality’s account and the amount of internal controls in terms of pro- auditor found that a lower bid by emerged that PAK cancelled tender this was due to the rise of oil glob- property tax collected fell in 2009 curements are extremely serious 50,000 euro was not accepted. lots, blaming it an insufficient ally were rejected by the auditor. compared to 2008, despite the and they increase the risk of MoP The auditors concluded: number of bidders, even though Mr Olofsson told Prishtina already low collection rate and [Municipality of Prishtina] pro- “Deficiencies noticed regarding there were enough bidders, and Insight: “PAK task is unique, growing number of properties. curements against fraud, loss and the internal controls in terms of favoured one bidder in a multiple- while Termokos is one of several It also emerged that municipal misuse.” procurement are extremely seri- lot tender by allowing him to with- providers of service to the citizens. assembly members saw their wage In a statement, the municipality ous and in a large scale increase draw from three lots even though In both cases transparency is of bill rise more than three-fold from argued that the audit gives a ‘posi- the risk of municipality procure- he was the cheapest, while award- utmost importance. As are good 64,000 euro to 281,000 euro from tive’ assessment of its accounts. ment to fraud, loss and misuse.” ing three others to him. business management and what 2008 to 2009, and that despite there It added: “The municipality will Ymer Berisha, spokesperson for Auditors concluded that the can be called good governance. being 51 members, wages were soon come with its comments the municipality, said the munici- management of procurement at “In these cases I think it is being paid to 53 people. The audit regarding the recommendations pality is analysing the report and PAK has ‘serious deficiencies’. important to strengthen checks called for an investigation, saying and remarks presented in the will consider the recommenda- In a statement, PAK stated that it and balances between the ones that that the payments to two people report.” tions. was pleased with the ‘unqualified have delegated a responsibility, the were illegal. Prizren’s accounts were also Mayor Ramadan Muja told opinion’. Spokesman Ylli Kaloshi ones who shall have the overview, Perhaps the most striking exam- given an ‘Unqualified Opinion Prishtina Insight: “There is no said he did not want to comment the ones who shall execute the ple of an alleged irregularity was with an Emphasis of Matter’. misuse of the budget in this on the issue of staff recruitment mandate and the independent the case of the fire engine pur- Among the problems found was municipality. I am here and I over- as each case needed to be looked at auditors who shall give an outside chased for 300,000 euro by the 82,000 euro paid in advance for see everything.” individually. perspective on the quality of the municipality, which has been esti- travel expenses. Of the nine cases At the Kosovo Privatisation Among the problems discovered external information and how the mated to be worth just 11,000 euro looked at by the auditor, no agenda Agency, PAK, auditors found that at Termokos, the publicly owned mandate is carried through.” by customs. The municipality for the visited country was staff were being employed without firm responsible for supplying Audits of more government argued that it believes the vehicle attached to prove the reason for the the necessary professional qualifi- heating to tens of thousands of departments, agencies and other to be worth the money, but the trip. cations, contrary to the ‘requests of homes in Prishtina, was the cost of publicly owned companies will be claim was dismissed by auditors The auditor also found a series PAK for that particular position’. the fuel purchased. published in the coming month. EU Pulls 15million Euro Boro Ramizi Plan After a year of wrangling between the European Commission and the Municipality of Prishtina, the EC has withdrawn a 14.5million euro grant to rejuvenate the Palace of Youth and Sports, otherwise known as Boro Ramizi, and instead will spend it in Mitrovica. New EULEX Plan for a new youth and sports centre. implement this project with He said: “This is the biggest IPA funding; it will be the gov- disappointment we have had ernment who will have to use Fighting Corruption By Muhamet so far with the implementa- their funding for Prishtina. September 2011 with the aim to free the Hajrullahu tion of IPA [Instrument for So, we swapped, and the government and private sector from Pre-Accession Assistance], so Commission is going to use corruption and that the plan would we decided, together with the the IPA funding only in soon be handed over to Kosovo’s justice 14.5 million euro plan to government that more efforts Mitrovica.” create a sports centre By Petrit Collaku system. are needed to help the youth of In a press release issued on Aworthy of international “This morning I finalised the plan Kosovo.” Wednesday, the ECLO said that events in Prishtina with the and I will submit it to my colleague, The IPA is a fund available discussions with Mitrovica landmark Boro Ramizi build- ohannes van Vreejswik, acting Ismet Kabashi, Kosovo’s chief prosecu- for countries aspiring to join had already started. ing has been dropped because chief prosecutor for the EU rule- tor,” Vreejswik said.