Financial Services, Health, Legislation, Lithuania, Markets and Companies

Auditors detected that LTL 8 million (EUR 2.32 million) were used by the Ministry not for the implementation of functions, but for other purposes. The Ministry took over the rights and obligations of the owner of Vilnius University Emergency Hospital from Vilnius City Municipality, however, made an irresponsible evaluation of all the taken over financial liabilities and as a result paid LTL 5.6 million (EUR 1.62 million) municipality debt to a leasing company for medical equipment used by the hospital. Furthermore, the Ministry caused damage worth LTL 2.3 million (EUR 0.67 million) to the State budget.

Since the equipment (computers, navigation system, software) purchased with EU funds was not put into service in ambulances until 2011, therefore the money used for the procurement of the equipment had to be reimbursed from Ministry's appropriations. Almost LTL 54 thousand (EUR 16 thousand) were used not for the intended purpose, since this amount was paid as penalties as a result of court proceedings when a subordinate entity had terminated a sublease agreement.

When assessing the ability to dispose State assets the auditors identified that the Ministry created conditions for private legal persons to profit from the State assets. In 2011, the NAOL recommended to the Ministry to evaluate the rent agreement of premises located in Siauliai, however, the Ministry did not take account of recommendations and continues to rent the premises to a private company, which subleases them for almost 10-fold amount.

"The NAOL old-timers try to convince me that one gets used to such facts and numbers. As economist, I cannot accept that. All of us must know that not only the budget funds, but also national laws have economic value, because they were drafted using limited and economically valuable resources," said Auditor General Arunas Dulkys.

Furthermore, the Ministry's solution to issue of parking facilities in territories of healthcare establishments is ineffective. Until now, having arrived to Santariskes or Kaunas Clinics patients have to pay for car parking. Administrations of healthcare establishments, which use State assets free of charge receive additional revenue, while patients incur additional costs.

For the second year running, the NAOL states that the Ministry does not implement the renewal programme for the ambulance car fleet. The inaction of the Ministry gives rise to a risk that due to deteriorated ambulance car fleet potential grave consequences may appear: emergency services to patients will start hampering.

"Financing for health care is also limited, therefore we have to assess every single cent spent with a sense of great responsibility. However, as State official I have to diagnose: such abundance of errors and systematic disregard of recommendations issued by the Supreme Audit Institution is a phenomenon related not to bureaucracy, but to bureaupathology," summed up Auditor General Arunas Dulkys.