KAS finds over PLN 120 billion in irregularities in public spending audit

In brief

• The National Revenue Administration audited 191 public entities, including ministries, foundations and state agencies.
• Irregularities worth more than PLN 120 billion were identified, covering subsidies, budget reserves and unjustified spending.
• 263 notifications of possible crimes, worth over PLN 106 billion, were sent to prosecutors, and 133 cases were referred to the public finance discipline body.

Scale of the audit

The National Revenue Administration (KAS) audited 191 entities as part of its review of how public money is spent (Ponad 120 mld zł nieprawidłowości. KAS ujawnia wyniki audytu – Money.pl) (Działania audytowe KAS w zakresie środków publicznych – Krajowa Administracja Skarbowa). The checked bodies include 17 ministries, 78 foundations, 29 associations, eight state legal entities, nine customs and revenue offices, three executive agencies and five special-purpose companies (KAS: Nieprawidłowości w wydatkowaniu publicznych pieniędzy na ponad 120 mld zł – RMF24). The total value of the irregularities found exceeds PLN 120 billion (Nieprawidłowości na ponad 120 mld zł. Skarbówka zawiadamia prokuraturę – Interia Biznes) (Gigantyczna skala nieprawidłowości w wydatkach publicznych. KAS składa zawiadomienia – Bankier.pl).

Types of violations

Auditors identified several categories of problems. These include breaches of the rules for granting and settling subsidies and other public aid, spending that did not match approved financial plans, and the creation of public institutions without economic justification. Other findings concern the use of general and targeted budget reserves outside their conditions, actions taken without a legal basis, wasteful spending, and failure to protect the interests of the State Treasury.

Referrals to prosecutors and disciplinary bodies

Heads of the regional tax administration chambers filed 263 notifications of possible crimes with prosecutors, covering more than PLN 106 billion. A further 133 notifications concerned possible breaches of public finance discipline and were sent to the Public Finance Discipline Spokesperson.