TALLINN, 2 March 2005 - Mihkel Oviir, the Auditor General, sent today a letter to the Board of Governors, the Central Management and the Central Assembly of the National Defence League and the Commander of the Defence Forces and the Government of the Republic, where he asks to take immediate measures to restore order in the National Defence League.
The last signal of the seriousness of the situation got the SAO yesterday, when the highest audit organization of the state received the report of Ernst &Young, the international audit company, concerning the financial year of the National Defence League that terminated fourteen months ago, i.e. on 31 December 2003. Auditing was finished last autumn, but the report was completed for some days ago.
Ernst &Young informed on 28 February 2005 that no opinion will be delivered on the financial statements of the National Defence League in 2003. “In the sense of auditors, leaving statements without assessment, is the worst assessment. This means that such a disorder is prevailing that nothing can be said,” stated Mihkel Oviir, the Auditor General. “In case there had been stated in the assessment that the things are reported incorrectly, it had been more positive than leaving without any assessment.”
Ernst &Young states that accounting of the National Defence League is not organized according to the Accounting Act, the financial statement of the year does not meet the requirements of the Act neither the other legislation. One of the leading auditing companies in the world confirms that it is not possible, as a result of the auditing procedures, to get the relevant proof, on the basis of which to assess availability and value of the inventories and the fixed assets as shown in the balance sheet.
In his letter the Auditor General recalls that the SAO has repeatedly paid attention to the problems of the National Defence League, but not very much has been taken to improve the situation. The National Defence League has not been able to submit the financial statements as required time after time or has not submitted it at all.
The SAO is of the opinion that the responsibility for the situation lies first of all with the Ministry of Defence that has to watch over the assets of the National Defence League and expediency of use and expenditure of money. At the same time the responsibility lies also with the Commander of the Defence Forces to whom the National Defence League subordinates.
“If the order with respect to record keeping over the cash and the assets will not be restored, I am not surprised when the National Defence League will discover itself already this autumn in a situation where the parliament as the representative of the taxpayer stops to finance it, because they are not sure where these tens and hundreds of millions of kroons go”, stated the Auditor General.
The Auditor General asks the Board of Governors, the Central Management and the Central Assembly of the National Defence League and the Commander of the Defence Forces and the Government of the Republic to take immediate steps to ensure implementation of requirements of the Act and preservation of the property of the taxpayer and the required accounting. At the same time the Auditor General asks to assess capability of Benno Leesik, the Chief of the National Defence League, to perform his tasks, as Mr. Leesik runs the National Defence League already for the last six years and there prevails a continuous disorder.
Toomas Mattson
Communication Manager of National Audit Office
Telephone: 6400 777
Mob: 51 34900
E-mail: [email protected]
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Posted:
3/2/2005 12:00 AM
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