Azerbaijani Audit Chamber reveals serious shortcomings in activity of Bakıelektrikşebeke OJSC

Azerbaijani Audit Chamber reveals serious shortcomings in activity of Bakıelektrikşebeke OJSC
# 14 April 2011 13:38 (UTC +04:00)
According to annual report of the Azerbaijan Accounting Chamber, the audit revealed preparation of project budget of facilities by the OJSC without special license, nondetermination of supposed cost of most facilities in accordance with methodical indicators, not expertizing of works to be done at the expense of allocated means, not expertizing project budget documents, not entering representatives of related executive powers into the tender commission on several facilities during procurements conducted at the expense of the state budget, implementation of procurements by request for proposals method without the agreement of related executive powers, not determination of labor force, reliability during procurement procedures conducted on some consignors, not receiving documents on outstanding liabilities about tax and other compulsory payments.

The reports says that winners of procurements have not presented performance guarantee of agreements, prepayments had been included into the agreements in case of nonconsideration of amount of the guarantee in RFP and final protocol of the tender, means paid for construction and capital repairs by signing an agreement with several contractors without special license, equipment and materials of foreign and local production stored up at the expense of means allocated for reconstruction works of power distribution networks had not certificate of compliance, origin and quality, though ready facilities were exploited, they were not accepted by state admission commissions.

The Board of Accounting Chamber discussed results of the audit and passed decision on effective using of state property and financial resources of the state by Bakıelektrikşebeke OJSC, realization of appropriate measures in the direction of increasing transparency and effectiveness of use from means, taking necessary steps for elimination of shortcomings noted in the audit act, and presenting the information on done measures to the Accounting Chamber. According to decision of the Board, Bakıelektrikşebeke OJSC has been addressed in connection with the revealed shortcomings.
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THE OPERATION IS BEING PERFORMED