Statement of Railway Infrastructure Administration, state organization on the Report released today by the Supreme Audit Office

29.10.2012

Prague, 29.10.2012 – the Supreme Audit Office has released a statement concerning the economic activity of Railway Infrastructure Administration (SŽDC) from 2009 to 2011.

According to the statement, the state paid through SŽDC almost CZK 12 bn. for the purchase of ČD, a.s. assets. SŽDC as the state organization does not make decisions concerning the asset transfer. The decision on the purchase of the movable and immovable assets was taken in compliance with the law by the Czech Government in 2008.  The total amount was based on the market price that was determined by an expert opinion.

The statement also pays attention to the cost of company-owned vehicles used by SŽDC Headquarters that was by 241 percent higher than at other organization units. Higher expenses relate to a different structure of the vehicle fleet during regular operation and to higher middle-class cars – then used by the top management. The expenses for repair and maintenance of such cars tend to be significantly higher than for those of common company-owned vehicles. The rent and subsequent sale of the cars was decided by the then SŽDC´s management. The increased total costs compared with the car purchase only have something to do with the fact that the rent cost also includes other forms of service, e.g. insurance and maintenance that are otherwise paid by the car owner himself.

The present SŽDC´s management tries to restrict the number of rented cars. The vehicle fleet is currently renewed through operative leasing for the first 130 cars; others will follow in the next period. Besides, SŽDC is preparing to release a tender for technical device to monitor the movement of all of its cars. This device will present records in the electronic logbook, which will bring about substantial savings for our company.

The Framework Agreement on providing legal service mentioned in the report was signed by the Ministry of Transport in 2007 for some subordinate organizations, SŽDC included. The amount of the agreed hourly rate varied from case to case; sometimes the need for in-depth specialization in respective issues was taken into consideration. The Framework Agreement is no longer effective; only some obligations related to ongoing construction projects still need to be fulfilled. SŽDC is preparing a tender for legal service that is to be released this year.


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