STATE AUDIT OFFICE
- Press Release -
Skopje, 04.12.2025
The Municipality of Sveti Nikole enabled illegally built structures on agricultural land to operate contrary to regulations
The State Audit Office conducted an audit of the financial statements along with a compliance audit of the Municipality of Sveti Nikole for 2024.
The audit identified shortcomings, irregularities, and non-compliance issues in the Municipality’s operations. Due to their significance, an adverse opinion was issued on the fairness and accuracy of the 2024 financial statements and on compliance with legal regulations, guidelines, and established policies for the core budget account (630), an adverse opinion on the fairness and accuracy of the 2024 financial statements, and a qualified opinion on compliance with legal regulations, guidelines, and established policies for the core budget account (637).
Uncollected receivables amounting to 65,837,000 denars, or 1,070,520 euros result from the failure to take regular collection measures. Due to the undefined aging structure and the high uncertainty of collection, these receivables have not been properly valued or adjusted.
Receivables for the public cleanliness fee in the Municipality of Sveti Nikole and at the Public Utility Company “Komunalec” Sveti Nikole remain unreconciled for 8,650,000 denars. In 2024, the Municipality did not generate revenues from this fee and did not adopt an Annual Program for public cleanliness. According to the accounting records, the public utility company has not transferred 27,419,000 denars to the municipal budget.
Taxpayers who acquired additional or new property in previous years have not been charged property tax, despite the real estate register being updated and property values revalued in 2021.
Legally prescribed deadlines are not being followed in the procedures for determining the status of illegally built structures, and rejection decisions are not being issued. Out of 110 applications for legalizing illegally built structures on agricultural land, 79 were not forwarded to the competent ministry for permit approval of auxiliary structures, and some of these sites have not been inspected.
A structure built on agricultural land classified as ‘arable land’ had an application submitted in 2017 to determine its legal status as an auxiliary structure. The Municipality neither conducted a site inspection nor forwarded the request to the competent ministry, leaving the case pending. Meanwhile, the structure operated as a hospitality facility until April 12, 2025, when inspectors from the Ministry of Interior and the State Inspectorate issued a decision prohibiting its use.
Hospitality facility on agricultural land
During 2024, permits for placing urban equipment were issued for only three facilities, while the remaining hospitality establishments used public traffic areas without permits or payment of the municipal fee for using space in front of business premises. The Municipality has not adopted an annual program for the placement of temporary structures, nor have any permits for temporary structures been issued.
Urban equipment and temporary structures
The Municipality does not generate revenues from the municipal fee for playing music in public venues or from the municipal fee for advertisements, announcements, and notices, and has not adopted a program for tourism promotion and information activities aimed at improving visitor conditions.
A Green Cadastre has not been established, a Strategy for the Development of Greenery and an Annual Operational Program for greenery planting and maintenance are lacking, and no revenues are generated from the fee for maintaining public urban greenery.
The identified irregularities in the management of the “Holiday Camp for Children in Star Dojran”—including offering accommodation services for which the municipality has no authority or institutional approval, issuing invoices without specifying the services in the fiscal register, and the outdated, dilapidated facilities—have resulted in unlawful revenue, unauthorized activities, and unsafe conditions for guests.
“Holiday Camp for Children in Star Dojran”
The “Rahilka Goneva” kindergarten in the village of Erdželija, built at a cost of 26,885,000 denars (437,154 euros), has not been put into use due to the lack of funds for constructing an access road from the street, valued at 48,820,000 denars (793,821 euros), and the absence of installed equipment for water treatment.
Kindergarten in the village of Erdželija
Of the total 3, 585, 000 denars from the municipal budget, 89% was allocated to sports clubs and associations and 11% to sporting events, leaving community and recreational sports underfunded. Programs in culture and the NGO sector are implemented without a public call or publication on the municipal website and without clearly defined criteria for the allocation and use of funds.
The audit identified unregistered land, property without title deeds, inadequate recording of completed investments, lack of inventory records for received and issued materials, and weaknesses in conducting the inventory of assets and liabilities.
Recommendations have been made to address the identified issues and urge relevant institutions and responsible persons to take necessary actions.
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]