The Court of Auditors examined over 300 contracts to the value of 1.1 billion lei and about 3,000 reports on the execution of works by contractors and subcontractors operating in the building sector as part of an audit to see how salaries and contributions to the national public budget were paid in 2015-2017. The audit results were presented in a public meeting of the Court of Auditors, IPN reports.
It was established that the business entities didn’t obey the legal provisions and didn’t declare payments to the budget in contrast to the data indicated in the reports on the execution of works. A sum of 4.3 million lei was not declared and paid into the budget in the audit period. Thus, about 10 million lei in salaries wasn’t declared. The income tax on the undeclared sums represents at least 1.3 million lei.
The extrapolation of these circumstances to the total value of investments and extensive repair works shows the companies could have not declared 327 million lei in salaries paid to employees and, respectively, in contributions to the national public budget. Respectively, about 500 million lei could have been paid illegally in salaries.
The audit report reminds that the employees who accept salaries “in envelope” risk being deprived of a motivating social package, leave, sick leave and maternity leave allowances and a pension corresponding to the earned incomes. The employees also cannot advance in career, benefit from loans and form stability on the job.
