TNBiz (TNBiz)
Markets  |  March 11, 2013 07:30:07

Ministry of Defence and the Interior has wasted over a billion crowns

The purpose of the offset program is the support of Czech industry. Principally based on the fact that the state enters a large public contracts to foreign suppliers while it undertakes to compensation state expenditures such as export promotion and investment.

Compensation expenses while the state are in the same or a greater amount than the value of a public contract. Offsets become used mainly in contracts related to defense and security - for example, the purchase of Pandur armored cars or lease Gripen fighter aircraft, etc.

Key to evaluating the performance of the offsets of offset obligations - the obligations that the suppliers undertook to perform in connection with the acquisition contract. Obligations may take the form of shares of Czech companies agreed to supply support for Czech exports, investments, etc.

In the ten-controlled offset programs had commitments for suppliers 57.4 billion crowns. Controllers but in examining specific transactions offset calculated that these commitments could be at least one billion higher.

Ministry of Interior and Defense as contracting entities to which offsets weigh, monitor the extent to which contractors fulfill their offset obligations. According to the mentioned ministries were met commitments of $ 43 billion.

Inspectors SAO but when checking found that departments deliverables to include even those who did not belong there. Responsible ministries and incorrectly recognized filling a value of 1.1 billion crowns.

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