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13th April 2022, Skopje – Ministry of Finance, through the Department for Public Sector Financial Inspection and Coordination for Combating Fraud Against EU Funds, will control usage of both public funds at public sector entities, as well as EU funds, in a more efficient and effective manner. This is envisaged in the new legal solution on public sector financial inspection which, upon proposal by MoF, the Government adopted at yesterday’s session.

Under the new Law, basis for initiating financial inspection is expanded as ex-officio, in cases of verbal reporting or after learning of reasonable suspicion of committed irregularities, deficiencies and/or suspicion of a crime in financial management of public funds, as well as EU funds, held with the entities subject to financial inspection. Financial inspection will not be conducted in cases of filed anonymous request, except when such anonymous request is substantiated with evidence or allegations of existence of reasonable suspicion of irregularities, deficiencies and/or suspicion of a crime in financial management of public funds, as well as EU funds, held with the entities subject to financial inspection.

New Law оn Financial Inspection in the Public Sector also envisages introduction of acts for pronouncing measures against the entity subject to financial inspection to eliminate the irregularity or the deficiency, to terminate the irregularity and to refund the funds in the Budget.

Following are among the more important amendments: increased amount of the fine for the head of the entity subject to financial inspection, as well as introduction of new misdemeanor provisions for committed misdemeanours by illegally using the EU funds and misdemeanours committed by natural person and responsible person at a legal entity by failing to ensure uninterrupted conducting of financial inspection or non-compliance with the requirements of the financial inspection.

Adoption of the new Law is required for the purpose of improving the efficiency and the effectiveness of the financial inspection when controlling the usage of both the public fund by the public sector entities and the EU funds, as well as overcoming the weaknesses in the existing regulations, detected when the respective MoF’s Department implemented the Law in practice.

Draft Law on Financial Inspection in the Public Sector has been prepared in cooperation with experts from the Twinning Project “Strengthening the Functions Of Budget Planning, Execution And Internal Control”, funded by EU, which was submitted to DG Budget for their opinion.

Also available in: Macedonian Albanian

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