State Audit Office: Railways operator has nine operational locomotives and 6.75 billion‑denar accumulated loss

The State Audit Office found that the rail operator Railways of the Republic of North Macedonia – Transport AD Skopje holds 62 locomotives, but only nine of them are currently operational. The audit further records a loss for 2024 of 331.8 million denars and states that, together with carried-over deficits from previous years, total accumulated losses amount to 6.75 billion denars.

According to the audit, the company's passenger rolling stock is also largely inactive: of 16 passenger train sets only five are usable, and out of 47 passenger cars just two remain in regular service and are being used to transport passengers.

The review identified problems in inventory management and record-keeping for raw materials, spare parts, small inventory, packaging and vehicle tires. The auditors note that 71% of stock — reported as 342,345 thousand denars, or 5,548,000 euros — predates 2019, and that no revaluation or write-down of those items was performed by the end of the reporting period.

Fuel handling and financial practice raise safety and financial concerns

On fuel operations the audit found inadequate, uneconomical and unsafe procedures for receiving and issuing petroleum products, which the report warns could threaten public health, safety and the environment. Measuring equipment is described as outdated and improvised, and therefore prone to manipulation and unable to accurately report fuel stocks at any moment.

Fuel dispensing is carried out with pumps whose meters have not been recently verified or calibrated, the auditors say. Separately, the company has developed a practice of filing objections to payment order decisions instead of timely settling due liabilities; that approach has led to protracted court cases and materially increased obligations arising from principal, interest and court costs.

Photo: press material from the event