The Chamber of Accounts: Nearly Half a Billion Lei in State Subsidies Used in Violation of Regulations

In this context, the authorities are advised to strengthen internal control mechanisms, strictly comply with legislation on state subsidies, and ensure effective monitoring of allocated funds. Almost 466 million lei of state subsidies provided in the Republic of Moldova were used in violation of the law. These conclusions are contained in a report by the Chamber of Accounts, which notes the absence of legal permits, serious shortcomings in documentation, and weak control mechanisms, writes jurnal.md. According to the audit, during the period under review, state bodies provided state subsidies totaling more than 1.12 billion lei, of which 465.7 million lei were found to have been used improperly. In 14 of the 26 cases reviewed, subsidies were provided without prior approval from the Competition Council, as required by law. The Audit Chamber’s report shows that in many cases, notifications of subsidies were submitted late or did not contain clear economic justifications confirming the need for state intervention. Gaps were also identified in the monitoring and assessment of the impact of these subsidies on the competitive environment. Among the cases mentioned are the provision of subsidies and property by local authorities, including the mayor’s office of Rezina, without following legal procedures, as well as subsidies to state-owned enterprises before the necessary permits were obtained. Similar violations were identified in the case of the Chisinau Municipal Council and the National Agency for Employment. The Audit Chamber warns that such practices undermine the transparency of public spending and may distort competition in the market. The report will be forwarded to the relevant authorities to address the identified violations and prevent similar situations in the future.