bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 20.05.2019 | Name days: Venta, Salvis, Selva
LatviaLatvia

Auditor General: Latvia has set wrong goals in EU funds acquisition

FaceBook
Twitter
Draugiem
print
(+1 rating, 1 votes)

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.


Leave a reply

  1. Dasia says:

    Frankly I think that’s abosluetly good stuff.

Raising minimal income level in Latvia would require EUR 28 million

Latvia’s Welfare Ministry has developed a Plan to improve minimal income support system in 2020-2021. In it, the ministry details that the plan’s implementation requires approximately EUR 28 million, as informed by the ministry’s social inclusivity department’s director Elīna Celmiņa.

Estonia investigates electricity blackout in Russian border city

In Estonia, an investigation has been opened into a power blackout that took place in the north-eastern border city of Narva and other places in the region.

Latvia’s Saeima to pick a new state president after EP elections

Saeima’s Praesidium and Faction Council decided on 20 May to keep the State President’s Election Day unchanged – it will happen 29 May.

Study: packaging convenience still trumps environment friendliness

For Latvian residents convenience of packages remains the most important factor. However, environment friendliness is gradually becoming more and more important for people, according to results of a study by Immer Group.

Harmony reportedly used RTDB to hire foreign political communication specialists

Latvian investigators have acquired documents that reveal how prior to 13th Saeima elections Riga Tourism Development Bureau (RTDB), which receives funding from Riga’s budget, had performed at least ten money transfers to several political communication experts from Germany, Sweden and Spain, as reported by public broadcaster TV3 programme Nekā personīga.

Ukraine’s Zelensky starts presidency with dissolution of parliament

Ukraine’s new President Volodymyr Zelensky has been sworn in Kyiv on Monday and in his inaugural speech has announced the dissolution of the Ukrainian parliament.

Austria heading to snap election after right-wing coalition collapses

Austrian political leaders are favouring calling a snap election after the government coalition in Vienna collapsed over alleged influence peddling by Vice-Chancellor.

Egypt bomb attack hits tourist bus

17 tourists in Egypt have been wounded in a bomb explosion near the landmark Giza pyramids.

Latvian Railways reportedly wastes money with self-promotion in sports; UGF might be involved

Last year and at the beginning of this year, Latvian Railways spent at least two million euros on self-promotion. A considerable portion of this money was provided to sports organizations, of which multiple have ties with the Union of Greens and Farmers, as reported by public broadcaster Latvian Television programme De Facto.

In spite of heavy rains, air temperature in Latvia will reach +29° C this week

The sky will be cloudy at the beginning of this week in Latvia. Nevertheless, it will clear from time to time. As the sky clears, daytime air temperature will reach +24° C… +29° C, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Week in Lithuania: PM clears no-confidence vote, top Court slaps LFGU, councillor fined for slander

Last week, Lithuania suffered upset in 2019 Eurovision Song Contest; PM Saulius Skvernelis survived a vote of no-confidence by the ruling LFGU; the Constitutional Court ruled that the Seimas breached law in dealing with public broadcaster LRT.

BNN summary of the week: shadow over Latvia's economy; Kalnmeiers receives bashing

The week passed in Latvia under certain unpleasant news. A study concluded that in spite of Union of Green and Farmers minister Dana Reizniece-Ozola’s praised tax reform the grey economy proportion in Latvia has increased.

Regional Ventas Balss newspaper’s editor punished for reporting false news

On 17 May, Riga City Vidzeme Suburb Court found Ventas Balss newspaper’s editor Gundega Mertena guilty of reporting false news in the article «Material 'Confession of Lembergs’ troll' is a 100% made-up story», which was published on pietiek.com portal on23 September 2018.

Court enforces 1 000 euros from Ušakovs for Riga City Council deputy

Riga City Vidzeme Suburb Court has declined suspended Mayor of Riga Nils Ušakovs plea against Riga City Council deputy Vilnis Ķirsis over supposedly offensive statements the latter made against the plaintiff.

Latvian minister proposes re-assessing prosecutor general’s professionalism

Latvia’s Justice Ministry has noticed signs that suggest Prosecutor General Ēriks Kalnmeiers is not fit to remain in his post, as there are suspicions regarding his reputation, Justice Minister Jānis Bordāns told journalists on 17 May.

Estonia’s Nordica ended 2018 with EUR 2 million in losses

Estonia’s national air carrier registered considerable losses in 2018, reaching EUR 2,3 million in unconsolidated losses.

U.S.-pardoned whistle-blower Manning sent back to prison

A United States grand jury has ordered back to confinement Chealsea Manning, the former American military intelligence analyst, who spent seven years in prison in a Wikileaks-related case before being released by the decision of former U.S.

Privatization Agency: Latvian Railways chairman is baselessly speculating about privatization

«A lot of speculations and incorrect statements containing the word ‘privatization’ are coming from Latvian Railways (LDz) board chairman Edvīns Bērziņš. He is trying to divert attention in his corporate conflict away from the company board’s relations with shareholders,» BNN was told by Privatization Agency (PA) board chairman Vladimirs Loginovs.

International police effort dismantles GozNym gang of cyber criminals

An international criminal network that used GozNym malware in an attempt to steal an estimated USD 100 million from more than 41 000 victims, mostly businesses and their financial institutions, has been dismantled in a joint police operation.

Prediction: Latvia’s new concert hall will recover investments in 15 years

In the first 15 years after construction of Latvia’s new National Acoustic Concert Hall it will earn Latvia’s national economy a total of EUR 107.6 million, fully compensating investments and creating additional profits of EUR 17.6 million.

Poland fights child abuse with prison sentences up to 30 years

Polish legislators have extended prison terms for convicted paedophiles to a maximum 30 years. The Catholic country’s child abuse scandals have been underscored by a new documentary on such crimes by Polish priests.

Money intended for child protection used instead to pay bonuses to officials in Latvia

Welfare Ministry’s allocated state budget funding of EUR 619 000 was used, among other things, to pay bonuses to officials for obvious everyday tasks even though initially it was implied that employees of the ministry and State Child Protection Inspectorate (SCPI) would perform some specific tasks to prevent child and family abuse.

Meteorologists promise air temperature will soon reach +26° C in Latvia

On Friday, 17 May, there will be plenty of sun and clouds. Western regions may experience some rainfall. Wind will draw in from the east, reaching 13 m/sec in Kurzeme, as reported by Latvia’s State Environment, Geology and Meteorology Centre.

Construction commences in Estonian-Latvian 3rd interconnection project

By raising the first supports of the new high-voltage Estonian-Latvian 3rd interconnection, Latvia’s Augstsprieguma tīkls (AST) has commenced the next step in the high-voltage power line project for a new 330 kV power line from Riga TEC-2 all the way to Kilingi-Nõmme substation in Estonia, as confirmed by AST.

Riga Tourism Development Bureau may have caused damages worth EUR 300 000

As a result of criminal activities Riga Tourism Development Bureau has caused damages worth no less than EUR 300 000, according to initial estimates.