No compulsory collection procedures were initiated, nor were any operating licenses revoked, although there were grounds for it, the State Audit Institution concluded.
According to the Treasury Directorate’s data, revenues from fees for the use of mineral resources amounted to about 6 billion dinars last year, which is about 2 billion dinars more than in 2016. Nevertheless, the debt to the budget of the Republic of Serbia on the basis of the mentioned compensation as of January 15, 2019 amounted to 2.6 billion dinars, with the largest part of the amount being interest on basic debt, in the amount of 1.9 billion dinars.
This was demonstrated by the State Audit Institution’s report on the audit of the expediency of the business “Efficiency of Mining Control” for the period 2016-2018.
– Utilization of non-renewable mineral resources would be more rational, and budget revenues from compensation would be greater if the operators of the exploitation were properly controlled and better coordination was established between the competent authorities – Dusko Pejovic, Supreme State Auditor and President of the SAI, said at a press conference.
He explained that the debt for unpaid compensation at the beginning of the audited period was 8 billion dinars, but when a pre-prepared reorganization plan was adopted for RTB Bor in 2016, it was written off 5.4 billion dinars debts. Of the remaining debt, Farmakom and Resavica have the largest amount.
Pejovic explained that the exploitation of mineral resources provides energy independence of the country and further economic growth, therefore, non-renewable mineral resources should be used in a strictly controlled and sustainable manner. The operators of the exploitation themselves shall calculate, report and submit to the Ministry of Mining and Energy and the Provincial Secretariat for Energy, Construction and Transport, data on the amount of exploited mineral raw materials and sales revenue, as well as the amount of compensation.
DRI Senior Advisor Goran Mandic said that about 200 companies are engaged in exploitation in Serbia, with coal, oil, gas and copper accounting for 90 percent of production.
– Between 30 and 60 percent of the companies engaged in exploitation between 2016 and 2018 did not or did not regularly submit documentation on financial commitments, resources and reserves. The tax administration did not control the calculation and payment of the mineral resource use fee. No criminal provisions were applied during the surveillance, except for inspection in individual cases – said Mandic.
In the case of inspection, in 31 cases it was not possible to identify who exploited the mineral resources. In 10 cases where it was determined who exploited the mineral resources, a ban on further exploitation was imposed, one motion was filed for misdemeanor proceedings in 2018 against an individual, but no application for economic offense was filed. Provincial inspectors have filed two charges of economic misconduct and one criminal complaint.
He pointed out that the largest revenues from the mining for the period from 2016 to 2018 were generated by the municipality of Lajkovac (887 million dinars) and the city of Kikinda (635 million dinars), without many local governments knowing if their territories are exploiting mineral resources or whoever is doing it, despite having a fee income.
The auditors concluded that adequate coordination had not been established between the authorities supervising the exploitation of mineral resources. Considering that there is no unique record of the operators of exploitation, and that no strategy for the management of mineral resources has been adopted. But, they also noted that the Ministry of Finance and the Ministry of Energy differently interpret certain provisions of the Law on Fees for the Use of Public Goods.
