TALLINN, 27 July 2004 - While auditing the Ministry of Foreign Affairs, the State Audit Office detected several violations of the Public Procurement Act. Lease agreements detrimental to the state were also reproved.
In the course of the audit, the State Audit Office detected 11 cases where the Public Procurement Act had been violated for an aggregate amount of 4.5 million kroons. The most notable of these violations were the purchase of removal services from KLG Eesti for 1.3 million kroons and the purchase of accommodation and catering services from Reval Hotelligrupp for 0.9 million kroons.
The requirement contained in the State Assets Act, according to which state assets should yield as much profit as possible, was violated in the case of two lease agreements: on Tatari Street in Tallinn 1077 square metres has been let to MB Autokeskuse AS at the price of 26 EEK per square metre and 1330 square metres has been let to OÜ Staford & KO at the price of 1 EEK per square metre. The latter company owes more than 100,000 kroons to the Ministry for power supply, yet the Ministry has failed to collect the debt or the default interest, although it is entitled to default interest under the lease agreement. In addition, the lease agreement contains a provision detrimental to the state, according to which the lessee is entitled to take on lease premises vacated by other lessees in the same building pursuant to the same conditions, i.e. at the same low price.
Sven Soiver
Press Representative of State Audit Office
Telephone: (372) 640 0787
GSM: (372) 53 414464
E-mail: [email protected]
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Posted:
7/27/2004 12:00 AM
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Last Update:
10/1/2015 10:27 AM
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Last Review:
10/1/2015 10:27 AM