Chamber of Accounts: Termoelectrica incorrectly reflected long-term debts for gas, and a discrepancy of 0.5 billion lei was identified in the amount of debt to the supplier.
This is stated in the audit report on the compliance of state assets management by Termoelectrica in 2020, which was presented by the Accounts Chamber. The auditors stated that Termoelectrica's management is mainly focused on current activities and is unable to eliminate historical problems, which negatively affects the management of the company's assets. In 2020, the company reflected revenues of 2 billion 308.6 million lei, expenses of 2 billion 317.1 million lei, and losses of 4.79 million lei. About 94% of Termoelectrica's revenue last year came from the sale of heat and electricity. In the structure of expenses, the cost of sales accounted for 86% of expenses, the cost of raw materials - 56%, remuneration of personnel - 15%, and the depreciation of fixed assets accounted for about 13% of expenses. During the audit, the Court of Accounts identified numerous violations and inconsistencies in Termoelectrica's reporting. Thus, the reporting incorrectly reflects the long-term debt to the supplier of natural gas (2.06 billion lei), also there have been revealed discrepancies between the debt registered with Termoelectrica and the acknowledged supplier of natural gas (574 million lei). The company did not comply with the provisions of the legislation regarding the management of fixed assets, without reflecting the real value of the assets owned by the company. The obsolete stocks of 107.8 million lei were not adjusted, errors were made in the provision of the consolidated financial statements and the management report - income and expenses were reduced by 10.2 million lei, fair criteria for remuneration of Termoelectrica's personnel were not developed. According to the report, Infobon, a subsidiary of Termoelectrica, which distributes heat energy, sends receipts and receives payments from the population, last year had a profit of 6.9 million lei, which is 9.8 million lei less than a year earlier. The company's income amounted to 15.9 million lei (1.5 times less than in 2019), while the company's expenses increased by 2.2 million lei - to 7.9 million lei. About 61% of Infobon's revenues in 2020 came from bank interest for keeping funds in deposits (77% in 2019). The Accounts Chamber notes that in 2020, as part of the bankruptcy procedure, Termoelectrica received 24 Termocom assets on its balance sheet, of which 18 were sold at short auctions. At the same time, 9 objects were sold for half the cost, and 2 companies participated in the tenders. The Accounts Chamber noted the urgent need for management decisions to clarify the identified situations in Termoelectrica, and also noted the importance of strengthening the internal control system to ensure effective management of compliance risks. // 01.12.2021 – InfoMarket
