Slovakia’s Labour, Family and Social Affairs Ministry could have detected failings in the pilot social enterprise Horehronie, which recently had its contract with the ministry cancelled, as early as August 2009, during an unscheduled inspection. By that time, the social company’s contract with businessman Ján Rosík, which led the ministry to terminate its relationship with Horehronie, already existed, the Sme daily reported on April 13.
The contract with Rosík revealed that the social business made a profit that it did not report – or return – to the ministry. Social enterprises, which are subsidised by the ministry, are not allowed to make a profit. A recent inspection – undertaken two weeks ago – reportedly found failings that led to the termination. The Labour Ministry, Sme reported, appears to have made inspections stricter only after auditors from the European Commission pointed to grave faults in the social businesses.
Following the ministry’s earlier termination of its contract with Arvik, another social company, Horehronie should also return the €1.6 million allocated to it by the ministry. Arvik, meanwhile, has not returned any money. Since January, the Finance Ministry has also been auditing social enterprises; the audits are expected to be completed by the end of April, according to ministry spokesperson Miroslav Šmál.
Source: Sme
For more information on social enterprises, please see: EC auditors detect flaws .
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
