conducted an audit devoted to the expenditure of funds for the protracted Izera electric car project. After the inspection, it turned out that during the period under review, the project assumptions and its goals were not implemented on time. Moreover, there were irregularities related to the transfer of PLN 250 million from the Reprivatization Fund by the State Treasury. But that’s not all. As we read, “NIK has identified far-reaching, also financial, and multi-annual (also for public finances) risks associated with this project.”
The Supreme Audit Office’s audit revealed many irregularities
It was emphasized that due to statutorily protected secrets, the inspection results can only be made public to a limited extent. It was also noted that the full verification results were presented to the Chancellery of the Prime Minister, ElektroMobility Poland SA, as well as to Prime Minister Mateusz Morawiecki, who was asked to “take specific actions”.
As a result of the inspection, it was assessed that “the Prime Minister’s involvement in the second half of 2021 of PLN 250 million from the Reprivatization Fund in the activities of ElectroMobility Poland SA (EMP), implementing the project of building the Izera electric car (Project), for which The State Treasury took over the shares of this Company, which was an unreliable action and carried a risk as to the efficiency of spending public funds. The irregularities resulted from the fact that project funding was granted for a project that did not have funds for its further implementation.
The Polish electrician is an ambitious idea, but it may already be outdated
Another thing mentioned by the Supreme Audit Office is poor supervision of the project. Despite further delays, the Chancellery of the Prime Minister did not take any action in this direction. The action schedule has not been updated, even though it should have been. There was also no audit carried out to verify the expenses that were paid from funds from the State Treasury. The inspectors also found irregularities in the remuneration of the company’s management. According to NIK, members of the management board received salaries that exceeded the limits that were previously established.
As we read further, “at the moment of completion of the inspection, the company still did not have the rights to dispose of the selected real estate in Jaworzno for the construction of a production plant”, which constitutes further delays, as the company was supposed to have the rights to dispose of the real estate in the first quarter of 2023. Moreover, the process of selecting the plot itself raises doubts, because “the scope of research carried out when assessing real estate in Jaworzno was not complete.”
As emphasized by the Supreme Audit Office, a prolonged project implementation process may result in the potential opportunity to enter the automotive market becoming obsolete. It was also indicated that the product itself may not generate the expected interest on the market. “The challenge is also posed by the increasing costs of operating electric vehicles, which are difficult to predict in the future and are currently growing, as well as the need for operational infrastructure.” It was also added that the project is ambitious, but carries a high risk.
Source: Gazeta
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