Court of Accounts unveils faults in implementing water supply project using World Bank's money

The Court of Accounts unveils a series of faults in running the Project on water supply and drainage, implemented by six water supply companies from Moldova, since 2003 till 2008. Monitorul Oficial (Official Gazete) of April 28, 2009 publishes a decision of the Court of Accounts (CA) in this respect, Info-Prim Neo reports. On June 9, 2003, the Moldovan Government signed with the International Development Association of the World Bank a loan agreement of $12 million. The project pursued to improve the technical performance of the Apa-Canal companies from Orhei, Soroca, Cahul, Balti, Stefan-Voda and of the Apele Moldovei agency. So, following the audit of the usage of this money, the CA decided, among others, to send the Anti-Corruption Center the due documents to investigate the way in which Apa-Canal from Cahul carried out works worth 226,300 lei, which actually had not been carried out by the commissioned company. The CA informs the Tax Inspectorate about the tax-related drawbacks unveiled and asks it to enforce the law for not computing the Value Added Tax worth 438,800 lei by the Cahul water supplier. The CA asks to register the aqueduct worth 1.3 million lei built from the project money in the accountancy books of the mayor office from Corjova (Criuleni district). The entrepreneur having carried out the works commissioned by the supplier from Orhei is to return 265,300 lei, since the Court considers the entrepreneur unjustly increased the work volumes. From Apele Moldovei's administration, the CA asks, among others, to make more accountable the personnel engaged in further projects in the area, to justify the money used for trips worth 600,000 lei and to return 46,500 lei illegally paid for trips, and to return 52,000 lei, which were paid in advance to people for trips. The CA finds, among others, that “from 2003 to 2006 (9 months), the Unit implementing those projects did not run its accountancy works, synthetically, analytically, split on types of expenditures and did not compile the reports according to the law. The implementing Unit did not observe the law, what led to inefficient operational expenditures, allowed for irregular payments, expenses for trips and meeting delegations were passed as expenditures lacking justifying documents. The Unit did not perform the annual inventory of the payments and incomes, as the Court found surpluses worth 91,900 lei and extra expenditures worth 36,500 lei.”

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