STATE AUDIT OFFICE
- Press Release-
Skopje, 03.03.2026
Weaknesses identified in the planning and execution of public procurements within the Ministry for Inter-Community Relations
The State Audit Office conducted a compliance audit of public procurements at the Ministry of Inter-Community Relations in 2023 and identified weaknesses in procurement planning, the awarding of public procurement contracts, the monitoring and verification of delivered goods and services, and the submission of required supporting documentation
The State Audit Office conducted a compliance audit of the public procurements at the Ministry of Inter-Community Relations (formerly the Ministry of Political System and Inter-Community Relations) in 2023.
The audit identified several weaknesses related to:
- the planning phase, which is based on historical data.
- the absence of an analysis of actual needs.
- insufficient research of market conditions; and
- the execution of contracts without submission of reliable supporting documentation.
The audit found that the Ministry has not adopted an internal act regulating responsibilities in the public procurement process. The estimated value of procurements was determined solely based on historical data, without analysis of market conditions or actual consumption. This practice resulted in unrealistic planning; namely, 45% of the contracts (9 out of 20) showed low execution (below 55% of the contracted value), while 1 contract was not executed at all.
This situation contributes to inadequate and unrealistic planning of the funds required to fulfill the Ministry’s responsibilities. It leads to the reservation of budgetary funds in amounts exceeding actual needs.
In the execution of public procurement procedures intended to ensure legality, transparency, and equal treatment of economic operators, the audit of 18 procedures identified inconsistencies in the application of the Public Procurement Law, affecting the transparency and correctness of the processes.
Specifically, it was noted that only the commission chairperson’s declarations of conflict of interest are uploaded to the Electronic Public Procurement System; in contrast, the declarations of the other members are not published. In eight procedures, although the notice and tender documentation provided for the conclusion of a framework agreement, individual contracts were signed instead. Some notifications of concluded and executed contracts were not published within the legally prescribed deadlines, and four contracts were signed before the submission of a bank guarantee, even though the guarantee is a prerequisite for concluding the contracts.
Inconsistencies were also identified in the execution of contracts commemorating significant events (“Ohrid Framework Agreement and Albanian Alphabet Day”), amounting to 9.6 million denars.
For the events, invoices totaling over 5.2 million denars were paid; however, supporting documentation (“accommodation specifications, guest lists, contracts for engaged experts”) was not attached to confirm that the services were performed and to serve as a basis for recording these transactions in the accounting books. Additionally, the tender documentation did not specify precise quantities of goods and services; the estimated values were based on historical data without detailed analysis, no person was assigned to oversee contract execution, and the responsible official did not sign the reports on completed activities. This situation prevents verification that the funds were spent in accordance with actual needs and in compliance with budgetary principles.
In the execution of other contracts, deficiencies were identified that indicate insufficiently established control mechanisms and non-compliance with legal and contractual obligations, namely:
- In the IT equipment procurement contract worth 999.000 denars, detailed technical specifications and a report on the qualitative and quantitative acceptance of the equipment were not provided.
- For the maintenance of the heating and cooling system, under a contract worth 600,000 denars, work orders valued at 587.000 denars were not signed by an authorized official, preventing verification that the services were performed.
- In the procurement of office supplies under a contract valued at 732.000 denars, of which 583.000 denars (79%) were executed, it was found that although the contract provided for successive deliveries, orders were not submitted electronically, and no physical records were maintained for the receipt and issuance of materials. Additionally, the contract did not include a maximum 12-month timeframe, as specified in the notice.
- For vehicle washing services valued at 354.000 denars, the contractor did not provide proof of access to an appropriate facility (vehicle wash), as required by the tender documentation, and most of the services were performed on vehicles not owned by the Ministry.
- In the procurement of hygiene and disinfectant supplies valued at 413.000 denars, it was found that one bidder’s unusually low prices (5 and 9 denars) were unjustified. Additionally, of the 29 items, only the 5 highest-priced items were procured.
Recommendations have been made to address the identified issues and call on the relevant institutions and responsible officials to take the necessary measures aimed at ensuring transparent and proper use of public funds.
Press Contact:
Albiona Mustafa Muhaxhiri +389 72228 203 [email protected]
Mijalche Durgutov +389 70 358 486 [email protected]
Martin Duvnjak +389 75 268 517 [email protected]