State Audit Office: Weaknesses found in AD ESM public procurement
Audit of 27 procedures shows about €143.6 million in 2024 commitments; a gas engine paid 153.3 million denars was not put into operation.
The State Audit Office found multiple shortcomings in the planning, execution and completion of public procurement at AD ESM – Skopje, according to an audit of the company’s 2024 purchasing activity.
The inspection covered 27 procurement procedures that resulted in commitments in 2024 of roughly 143.6 million euros. Auditors concluded the annual procurement plan had been prepared "without appropriate market research and an analytical approach to determining needs."
Key findings
During 2024 the procurement plan was amended 19 times. The audit identified instances of limited competition, procedures that received only a single bid, changes to tender documentation after publication, and weaknesses in technical specifications and in vetting bidders.
Auditors also documented concrete examples of incomplete or inefficient use of purchased items. A gas engine for which 153.3 million denars were paid was never commissioned, and additives valued at 141.6 million denars remained largely unused and subsequently expired.
The report draws a picture of procurement processes that lacked adequate market analysis and internal controls, creating risks to value for money and proper use of funds. The audit’s findings point to the need for stronger procurement planning and stricter controls over contract execution and inventory use.
Photo: press material from the event
