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Wednesday 13.11.2019 | Name days: Jevgēņija, Jevgēņijs, Eižens
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Auditor General: Latvia has set wrong goals in EU funds acquisition

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU, Inguna Sudraba

Auditor General Inguna Sudraba

The state has set wrong objectives in the European Union (EU) funds acquisition, not considering efficient use and the maximum yield of these funds, the Auditor General Inguna Sudraba indicated at Saeima European Affairs Committee meeting.

Only one objective prevails – to acquire the funds, and not to evaluate their most effective use, or the added value, LETA cites the Auditor General.

According to Sudraba, it is less considered whether the projects reach the set goals and contribute to the economy, and whether the invested money has added value. The main thing is to utilize all the money. Also, the fund management system itself is heavy, a large amount of information is requested and received, but little of it is taken into account and used, the Auditor General pointed out.

During the meeting, the Ministry of Finance representatives acknowledged that it is too late to carry out a substantial reform and merge the responsible institutions, as it was suggested by the Ministry a year and a half ago. These reforms did not received support from the government coalition, but it is too late to implement them now, as this could undermine the acquisition of funding in the remaining planning period until 2014.

Currently, seven institutions under the authority of ministries are in charge of the fund acquisition, and we should consider merging them, only starting from the next planning period.

The Finance Minister Andris Vilks remarked that a record-high funding has been allotted to the EU funds in the next year’s budget – 1.1 billion lats – and, according to the government and the international experts, next year funds will be the only major instrument for economic development.

As reported previously, the State Audit Office (SAO) found that the Ministry of Finance (MF) has improved the procedure of irrelevantly used fund recovery and control; however, it did not avert several considerable shortcomings in the EU fund acquisition surveillance system.

The surveillance system of EU fund acquisition does not create the conviction of a systemic approach to the control and analysis of fund utilization. Presently, the EU fund management is focused on faster acquisition of money, not on more effective measure implementation, evidenced by the SAO identified deficiencies in the EU fund planning and redistribution.

The SAO also established that the MF does not provide a qualitative management of the EU funds to achieve macroeconomic stability, because relevant assessment of the EU fund investment impact is not carried out.

Still, when carrying out payment request inspection, the institutions verify the expenditure supporting documents at full extent, not randomly. Thus, the MF has failed to ensure a sufficiently effective and economical use of 2.7 million lats, the SAO concluded.

As indicated by the SAO, the MF has not made improvements in the optimisation of organizational structure. The structure of the EU fund managing institutions is fragmented, small divisions perform similar functions, and the proportion of executives and employees has been retained at the level of 2009 – one executive per 1.8 employees.


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  1. Dasia says:

    Frankly I think that’s abosluetly good stuff.

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