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Audit: activity of Social Ministry lacks responsible approach in Lithuania

BC, Vilnius, 24.07.2015.Print version
Having conducted a financial audit of the Ministry of Social Security and Labour of the Republic of Lithuania the National Audit Office stated that State funds in the area of labour and social care were used irresponsibly, the office reports LETA/ELTA.

Beginning with the year 2008 the State paid between LTL 40 to 50 million (EUR 11.6 to 14.5 million) for maintenance of the children in cases when persons who were supposed to exercise the necessary care by the court's decision did not do it. However, the audit detected that part of the amounts in this period have been paid unduly and by the end of 2014 the overpayment amounted to more than LTL 1.8 million (EUR 0.52 million).

 

Irregular payments have occurred in cases when persons, who had lost the entitlement to such social benefit did not inform the funding administrator – the Children's Maintenance Fund, whereas the Children's Maintenance Fund did not ensure that benefits would be paid to those who are entitled to receive it. Gaps in the relevant legislation have also been detected.

 

The auditors have also identified overpayment to the Trakai Municipality. The Ministry has unduly overpaid LTL 864 thousand (EUR 250 thousand) subsidy based on the incorrect data on the number of children entitled to the State benefit provided by the Municipality. The Municipality reported on the 27 children in need of social care more than actually existed and used those amounts to cover the Municipality expenses.

 

The Ministry of Social Security and Labour took note of the National Audit Office recommendation and took steps towards recovery of the amount overpaid.

 

Shortcomings in the formation of active labour market also deserve to be mentioned. In 2014 more than LTL 19 million (EUR 5.5 million) were spent for training of the unemployed. Having familiarised with the requirements for the training providers and training programmes the auditors identified that presently any legal person has the right to organise informal professional training and that there is no regulation in place for the training quality, duration and price. For instance, duration of training course for truck drivers is 70 hours, whereas duration of specialised training for sushi makers is as many as 320 hours. Both training providers and attendants are interested in the longest possible duration of training because the State provides for the scholarship, accommodation and travel expenses for trainees during the training period.

 

The National Audit Office gave its observations concerning organisation of public procurement by the Agricultural and Food Market Regulation Agency. In 2014 food products for the deprived people were purchased for LTL 11 million (EUR 3.2 million) in the framework of the project funded by the Ministry. The audit detected that the winner of the tender supplied only one of nine items under the contract, whereas the rest were supplied by subcontractors. Thus the wholesale price for the products acquired was not lower than that if they were acquired by retail trade.

 

"In the families we all try to buy more for less. So why this principle is not followed by those who are entrusted by the State to serve citizens and provide everyday food for the poorest people?| asked rhetorically the Auditor General Arunas Dulkys.

 

According to the Auditor General, as the funds used in the area of labour and social security have not only to improve the quality of life but also contribute to the enhancement of human dignity, the process of implementation of recommendations will be monitored as closely as possible.






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