Audit finds Pelagonija student dorm's €23,000 kitchen missing; purchases paid above market prices
State Audit Office says kitchen equipment bought in December 2021 for nearly €23,000 is unaccounted for; procurement and expense irregularities were found.
Audit work by the State Audit Office has identified multiple weaknesses at the Pelagonija Student Dormitory in Skopje: a set of kitchen equipment procured through the Ministry of Education and Science in December 2021 for nearly €23,000 is not recorded in the dormitory’s inventory and cannot be located in the kitchen premises; several procurement contracts were signed at prices above market levels; and payments were made without adequate documentation.
Key findings from the audit
"With the audit of public procurements for fresh meat from 2023, processed meat, meat products and fish from 2023 and 2024, as well as agricultural products from 2023, the auditors found that most often only a single bid was submitted, and contracts were concluded at the estimated value without quantities defined in advance. For regularly procured items the offered prices are higher than market prices, while for items that are not regularly procured unrealistically low prices were offered, without requesting further explanation from the economic operator," the State Audit Office wrote in its report.
The auditors highlight a series of questionable practices in food procurement. The report describes how the supplier invoiced bread incorrectly: although the contracted price was 57.46 denars per kilogram, the supplier billed single pieces of bread as if they weighed a kilogram. That irregularity was detected only toward the end of 2024 after weak internal controls allowed it to continue. After daily records were introduced, monthly invoices in 2025 dropped substantially compared with 2024. "The audit also found that with the new contract in 2025 the price of bread reached 126 denars/kg, which is significantly above the market price of around 70 denars/kg, indicating uneconomical use of public funds and weaknesses in procurement control," the report stresses.
Procurement of mattresses for student use also raised red flags. The dormitory purchased 250 mattresses for a total of €19,000 that do not match the dimensions set out in the technical specification, lack proper acceptance documentation, remain in storage and have not been put into use. "Also, we established that previously 450 mattresses had been purchased from the same supplier, although the existing ones were in good condition, and because the dimensions of the beds are smaller than the mattresses the stability and statics of the beds were compromised," the auditors note.
The review found problems with white goods and maintenance contracts as well: a dishwasher that is out of service was nevertheless covered by a service contract that was fully executed, which points to poor planning and potential unnecessary expenses. Audit notes also question spending of €19,700 on servicing appliances.
Finally, the auditors report improper use of funds for representation and the servicing of a privately owned vehicle that had been authorized for official use. "In the part on expenses, it was established that payments were made for representation without adequate supporting documentation, and fuel purchases, servicing and replacement of spare parts for a private motor vehicle approved for official use were carried out, which are not supported by appropriate credible documentation, which indicates the use of budget funds for private purposes," the audit report states.
The State Audit Office has called attention to these deficiencies as evidence of inadequate internal controls, shortcomings in procurement procedures and improper use of public resources at the Pelagonija Student Dormitory. Auditors were unable to locate the kitchen equipment bought through the Ministry of Education and Science in December 2021—neither in material records nor in the kitchen itself.
Photo: press material from the event
