ESM paid millions for purchases it did not use, State Audit finds

The State Audit Office found that ESM paid millions for procurements that were never put into operation, including an additive whose shelf life expired while stored and a gas engine kept in a warehouse.

Key audit findings

The auditors flagged several procurement practices as problematic: purchases that were not used, contracts awarded with a single bid, and contract amendments made without sufficient justification.

One prominent case concerns an additive purchased for 2.3 million euros. The report states that the bulk of that material was never used and later passed its expiry date while stored. Prosecutors have filed charges related to the additive purchase, and the court case is still ongoing.

ESM also paid 1.7 million euros for relocation of equipment that was not commissioned, the audit notes, and recorded what it called significant losses for the company stemming from these arrangements.

Auditors found that a gas engine was procured in 2023 through a negotiated procedure without prior advertisement on grounds of urgency. A large portion of the contract value — 2.4 million euros — was paid, but the engine was not put into operation. It was delivered after seven months and remained stored within the Subsidiary Energetika yard without the conditions needed for operational use.

The report adds that conservation work was carried out in June 2025, which indicates the engine had not been activated for more than two years; auditors therefore say the stated urgency behind the procurement cannot be substantiated.

In total, the audit focused on 27 public procurement procedures carried out in 2022, 2023 and part of 2024. ESM responded to the audit by saying many of the auditor’s observations had already been noted internally and that AD ESM had filed criminal complaints over some of the alleged irregularities.

The audit comes amid ongoing public scrutiny of the state power company’s finances and repeated questions about whether its situation can be improved.

Reporting: Irena Čačkova

Photo: press material from the event