Poland’s National Revenue Administration (KAS) has identified more than PLN 120 billion in irregularities involving public funds after auditing 177 entities, including ministries, public institutions and non-governmental organisations. Tax administration directors submitted 255 notifications to prosecutors concerning suspected offences linked to cases worth more than PLN 106 billion.
177 entities were covered by the audits
The audits focused on the management of public money and covered a broad range of institutions. According to the Ministry of Finance, the list included ministries, offices, public institutes, foundations, associations and other organisations that had received or managed public funding.
KAS said it found multiple types of irregularities. These included breaches of rules governing grants and other forms of public aid, spending inconsistent with approved financial plans, the use of subsidies for purposes other than those for which they had been awarded and uneconomic use of public funds.
Inspectors also identified cases in which public institutions or other entities were created without sufficient economic justification, as well as cases involving the use of general and earmarked budget reserves contrary to the conditions attached to them.
255 notifications were sent to prosecutors
Following the audits, directors of Poland’s Tax Administration Chambers submitted 255 notifications to prosecutors concerning suspected criminal offences. The Ministry of Finance said the value of cases covered by those notifications exceeded PLN 106 billion.
This figure should not be confused with the broader value of all irregularities identified by KAS. The tax administration put the total value of irregularities uncovered in the audited entities at more than PLN 120 billion.
KAS also submitted 131 notifications to the Spokesperson for Public Finance Discipline concerning possible breaches of public-finance rules.
KAS points to systemic problems in public spending
The list of findings published by the tax administration goes beyond individual accounting errors. KAS cited cases of action without a proper legal basis, regulations being created for specific needs, failure to protect the interests of the State Treasury and spending that did not meet basic standards of purposefulness and economy.
The scale of the cases means the findings are likely to feed into a broader debate in Poland over oversight of grants, reserve funds and public institutions. However, a notification to prosecutors does not in itself establish criminal liability. Individual cases will now be assessed by prosecutors and, where applicable, by courts.
Sources: Ministry of Finance, National Revenue Administration (KAS), PAP, Money.pl.
