STATE AUDIT OFFICE
- Press Release -
Skopje, 15.01.2025
Absence of National Strategy for Protection and Rescue, Qualified Personnel, and Inadequate Property Management by DPR
The audit revealed that the Directorate for Protection and Rescue (DPR) is facing serious challenges in its operations due to the lack of a National Strategy for Protection and Rescue, the absence of qualified personnel, and inadequate property and equipment management. This creates significant risks to the country's safety, especially in the event of natural disasters and other emergencies, where rapid and effective response is crucial.
The State Audit Office performed an audit of the financial statements and a compliance audit of the Directorate for Protection and Rescue for 2023.
Based on the audit, we expressed an adverse opinion on the accuracy and objectivity of the 2023 financial statements and their compliance with legal regulations, instructions, and policies in place.
By 2005 decisions of the Government of the Republic of Macedonia, DPR was allocated 198 facilities (100 shelters and 98 business premises—offices, warehouses, garages, etc).
The business records contain 24 construction objects (12% of allocated structures), but there are no title deeds or documentation on the methodology applied for the real estate valuation. In 2019, DPR submitted a request to the Bureau for Court Expertise for a value assessment of 32 structures. The Bureau provided the value assessment, but as of the date of the audit report, the premises had not been recorded in the business books of DPR.
For the remaining 142 structures (72% of allocated structures), no valuation process or recording in DPR business books has begun, even though SAO has given a recommendation on this shortcoming in the Final Report of the authorized state auditor in 2010.
Shelter in Skopje, Minicipality Karposh
Shelter in Veles Shelter in Skopje, Municipality Aerodrom
During the visit to some of the shelters allocated to DPR in the regional offices in the municipalities of Centar, Aerodrom, Karposh, Gazi Baba, Veles, and Shtip (which have a total of 32 shelters), it was found that DPR does not perform regular maintenance. Many of the shelters are blocked or closed off by trees and bulky waste, some are open and resemble dumpsites, while some serve as warehouses for old equipment. Some shelters are out of use due to malfunctioning ventilation systems and a lack of electricity and water. In addition, one shelter is being used by a private legal entity, for which no lease documentation was provided, nor was any income from this use identified.
Some of the equipment stored in DPR warehouses is non-functional, unusable, technologically outdated, incompatible, untested, and has not been serviced for an extended period, with expired service life. Part of the equipment allocated by the Ministry of Defense following the division balance back in 2005 is over 40 years old.
DPR warehouse in bad condition, where unusable, non-functional, and old equipment is stored
According to the Rulebook on Systematization of Job Positions, DPR has allocated seven pilot positions. By June 2024, only three positions were filled and after the retirement of two pilots, DPR was left with only one active pilot. Following an extraordinary inspection, the Civil Aviation Authority temporarily restricted DPR from carrying out flight operations due to the lack of qualified aviation personnel. DPR submitted a request to the Government for approval to engage two pilots on a contractual basis. Due to the pilot shortage, DPR aircraft will not be operational, affecting the overall fire protection process. Considering that in the first half of July 2024, more than 10 open wildfires were active in the country, DPR signed contracts with retired pilots for three months.
DPR has not established written criteria to determine the needs and priorities of the fire units for procuring firefighting equipment and fire extinguishing resources. In 2023, 40 isolation breathing apparatuses and 20 handheld thermal cameras for firefighters were procured, but they have not been distributed to the municipal fire stations. Instead, they are stored in DPR warehouses. In March 2024, another 40 isolation breathing apparatuses were procured, which are also kept in DPR warehouses.
The National Strategy for Protection and Rescue has not been adopted since 2018, even though a draft National Strategy and an Action Plan for 2022-2025 were drafted in 2021. This situation creates a risk of uncoordinated activities at local, national, regional, and international levels when dealing with the dangers of natural disasters and other emergencies, which affects the overall national protection and rescue system.
Each year, DPR signs a public procurement contract for aircraft insurance. The audit revealed that an external expert/brokerage company has been mediating and negotiating insurance and reinsurance coverage for all types of insurance and assisting in drafting the technical specification for public procurement of insurance. The external expert/brokerage company has been paid 25% of the contract value, amounting to 12.787.000 denars (or approximately 208.000 euros) over two years. We were not presented with convincing evidence about the necessity and justification for engaging the broker in negotiating insurance and reinsurance coverage.
The Law on Public Procurement defines the competencies of the Public Procurement Commission, which, inter alia, should prepare the tender documentation. DPR did not demonstrate the need and justification for engaging the broker to draft the technical specification because the Regulation on the Organization and Work of DPR defines that the specialized aviation services department is responsible for preparing the documentation required for hull insurance, procurement of parts, and fuel for the aircraft, as well as participating in the preparation, organization, and implementation of tenders.
Given that it concerns the same subject of insurance - aircraft purchased in 2010 that have been continuously insured, we have not obtained assurance of the need for external experts in the public procurement process, nor were any documents provided to confirm that the brokerage company had executed the contract. It was agreed that the broker would perform duties as a consultant or professional collaborator without financial compensation to DPR; DPR has agreed to pay the brokerage commission, charged by the insurance broker from the insurance company after DPR makes the premium payment. However, the commission percentage was not specified. The amount of the brokerage commission was set in the public procurement decisions at 25% of the contract value or the total agreed premium.
Press contact:
Albiona Mustafa Muhajiri +389 72228 203 [email protected]
Mijalche Durgutov +389 70 358 486 [email protected]
Martin Duvnjak +389 75 268 517 [email protected]