The presentation of Clean start, an in-depth analysis of the situation, a project by former Deputy Prime Minister Radimir Čačić, is currently underway, reports Dnevnik.hr.
The in-depth analysis covered 22 entities, including ministries, institutions, state companies such as HEP, HŽ, HAC, HC, as well as the pension and health systems. The results were presented by Denis Petrović, the project leader and coordinator, and special advisor to the Deputy Prime Minister, stating that the goal of the project was to gain insight into what was found as of January 1, 2012, or as it was popularly said, to see what skeletons were in the closet.
Petrović immediately focused on about 50 companies from the maritime transport and infrastructure sector operating within the state system. He emphasized that they received 5.7 billion in subsidies for regular operations, generated an income of 1.2 billion kuna annually, and their total indebtedness was around 68 billion kuna.
– They did not earn even enough for interest, let alone to repay loans – said Petrović while presenting the results of the six-month analysis.
Significant amounts were also exceeded in ministries by January 1, 2012, compared to the budgeted funds. For example, there are unpaid claims of about 1.4 billion kuna in just three ministries.
– There was no indication that this would improve, there were no signs of any reform, nor measures that would prevent such a situation – said Petrović. He explained that later in 2012, efforts began to find a way out of these situations, but noted that the accumulated debt cannot be resolved in the next few years.
– Analysts conclude that there is no lack of knowledge and qualifications in the system, but rather a lack of management on how to get out of the situation. ‘There was no visible will to oppose inadequate decisions – says Petrović, adding that one of the recommended measures is to respond to the results. The least painful, they say, is the standardization of conducting analysis since there were no unified accounting rules until January 1.
– Management instruments exist, we do not know why they are ignored. None of the professional management instruments, except for EU projects, exist. There is no system of methodological reporting, goal setting, contracting obligations… For example, it is known what limit a hospital has, but what the hospital needs to provide for that limit is not known – says Petrović.
He also stated that the public procurement system is very bureaucratized and so decentralized that it is unclear who ordered, who conducted the procurement, and what ultimately happened. He recommends, for example, the unification of a central body that takes over the public procurement system for the entire country. This has the effect of curbing corruption and restoring trust in the state as a public contractor.
