Buletin 3_4-2010 web.pdf - Curtea de Conturi a Republicii Moldova

amounts leading to risk of inconsistent costs
for the construction of the railway line and
respectively, the misuse of funds, where the
contract signed was worth MDL 832 .1 mln .
Agency for Land Relations and Cadastre did
not secure all actions to purchase land from
private property into state property; register
the real estate; legalize contracts; form and
register parceled land proceeding from the
location of the railway line Cahul-Giurgiulesti
and preparation of papers to change the use
of land; hence the documents on the allocation
of land for construction of this objective
are not prepared so far . The failure to solve regularly
and timely the situation with the land
conditioned additional and irrational costs .
As a result of non-preparation of papers to
change the use of land intended for construction
of railroad Cahul-Giurgiulesti, CFM ensured
no compensation to the state budget for
the losses estimated to total more than MDL
119 .7 million caused by exclusion of land from
the categories of agricultural land and forest .
The manner set for the allocation of budget
funds to increase the equity capital of CFM
and the failure of CFM to qualify as contracting
authority for public procurements, as
required by law, enabled it to ignore the public
procurement procedures for contracting
works for the construction of the railway line
Cahul-Giurgiulesti .
Contrary to the legislation governing the
quality of constructions, and by contracting
works through a number of subcontractors,
both CFM management and technical officials
appointed by it did not ensure an effective
monitoring and verification of the correct
execution of works for the construction of the
railway Cahul -Giurgiulesti, which led to significant
weaknesses and exaggerations in the
execution of works by some performers that
conditioned a higher risk of fraud and error .
The deficiencies in the execution of works for
the construction of the railway line Cahul-
Giurgiulesti generated exaggerations and increase
in the value of works amounting to approximately
MDL 22 million (Republican State
Association for Soil Protection – MDL 8 .2 million;
CFM subsidiary Mechanized Column No .
15 – MDL 7 .1 million, JSC “Aqua Prut” – MDL
3 .8 million, LLC „Construm”- MDL 0 .9 million,
the track maintenance division No 3 – MDL
0 .8 million, etc .)
Exploitation and re-cultivation of quarries
for extraction of mineral silty and sand soil
necessary for the construction of the railway
was performed with deviations from the legislation
in force and in the absence of projects
for quarries re-cultivation . There is no
information on the cost of works performed
and the fees for the extraction of natural resources
that were to be paid into the state
budget .
As at 01/08/2010, according to the minutes
received, the value of works performed for
the construction of the railway Cahul –Giurgiulesti
totaled – MDL 502 .3 mln, but the construction
was not finalized .
overall audit conclusion:
Central public authorities and SE “Calea Ferată
din Moldova” admitted serious breaches
of the legislation in force in the design and
construction of the railway line Cahul-Giurgiulesti;
SE “Calea Ferată din Moldova” has not fulfilled
its obligations as beneficiary of the
construction and allowed contracting and
carrying out of construction works seriously
breaking the rules set for transactions with
public funds; there was no proper control of
the amount of work performed, which caused
undue growth of expenses and damage
to state property .
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Audit activity