Where are the “missing” Millions Marks in Bosnian Public Company Rad?

July 1, 2020 7:00 PM

 

In the past period, Federal auditors combed the documentation in the Sarajevo public company “Rad” and, based on critical findings, gave this company a negative assessment of the report for last year, Klix.ba news portal reports.

Thus, among other things, it was stated that this company did not correct the value of obsolete receivables at the expense of expenses in the amount of 8,775,522 BAM. If the value correction had been made, as it is stated, this company would have shown a negative financial result in the amount of 8.7 million BAM. Thus, the assets and the financial result are overestimated.

Also, the auditors stated that Rad generated significant income from renting a collective parking garage in Ciglane, and the right to use and dispose of this property is not regulated, ie there is no documentation or lease agreement. Thus, the assets that this public company has at its disposal are not stated in the business books and financial statements in accordance with the standards.

The company Rad, the auditors point out, has investment real estate of 21.2 million BAM. The land is worth 7.6 million BAM, and the garages of collective parking that are rented out for 13.5 million BAM.

“The last estimate of the fair value of garages for 2019, made by a certified appraiser, states that the garage of the collective parking Dobrinja IV in Petra Tijesica Street is not stated in the business books. Its total value is 2.1 million BAM,” the auditor’s report says.

Also, the auditors emphasize that the documentation on revaluation reserves (reserves used to reconcile the book and fair value of fixed assets, capital and liabilities) was not presented, even for the amount of 11.6 million BAM.

The auditors also found numerous objections in public procurement. Thus, the law was violated in the procurement of car garbage trucks because no guarantee or its realization was required, and the lowest price was not required in the procurement of fuel.

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