An extraordinary audit is underway in the Hrvatska Elektroprivreda (HEP) power provider which was requested at the end of October by Minister of Economy and Sustainable Development Davor Filipovic, the Vecernji List daily reported on Tuesday. Pročitaj više

This information was confirmed yesterday by both HEP and the ministry, which revealed that the auditor has been hired to determine how HEP operated from the beginning of last year until 30 September of this year.

The ministry said that the reason for the extraordinary audit is related to the government’s autumn package of measures that have been in effect since the beginning of October. “Since we are in an unprecedented energy crisis, the audit is aimed at analysing all contracts for the purchase and sale of energy sources – electricity, gas and coal, signed during the specified period,” the ministry explained, as carried by the daily.

The audit’s specific objectives are “to review the purchase, sales and market prices of the mentioned energy sources, the period for which the contracts were concluded and the conditions under which they were concluded with business partners.”

The audit is also required to analyse the internal control system, especially regarding the signing of these contracts, which, according to the Ministry, needs to cover all decision-making levels.

“In addition, the auditors have the task of reviewing the role of the internal and external audits and the audit committee, primarily with regard to recommendations submitted to the management,” the ministry said and added that the auditors can also examine other circumstances that are significant to HEP’s operations.

The results of the extraordinary audit are expected within two months. Depending on the results, recommendations  are expected that would eliminate any possible deficiencies and how to improve internal control systems.

The government capped the price of electricity and gas for households and businesses in its autumn package, with the greater part of this burden, estimated at HRK 6 billion, to be borne by HEP, the daily noted.