SAI seeks dismissal of Mayor Aleksandar Sapic due to irregularities in operations of City of Belgrade

The State Audit Institution (SAI) announced that in its post-audit report, it had assessed that the City of Belgrade had seriously violated the obligation of good business practices, and that it had therefore sent a request to the Belgrade City Assembly for the dismissal of the responsible person - Mayor Aleksandar Sapic.

After conducting an audit of the regularity of the operations of the City of Belgrade in the part related to employee expenses for 2022, for direct and indirect beneficiaries of budget funds, SAI, as emphasized in the statement, determined irregularities that the auditee was obliged to correct.

– Although the entity submitted a Response Report on the measures it took to eliminate irregularities, SAI determined that evidence of their elimination had not been submitted for certain irregularities, which is why it conducted a review of the response report and issued a post-audit report in the post-audit procedure – SAI states.

The SAI, as explained, determined that the City of Belgrade had not satisfactorily eliminate significant irregularities, as follows:

1. For 892 employees (direct budget beneficiaries), the coefficients established for calculating salaries are not in accordance with the regulations, which resulted in overpayments of 215.7 million dinars in 2022.

2. In preschool institutions founded by the City of Belgrade, incorrect application of coefficients and the basis for calculating and paying salaries was determined, which resulted in overpayments of at least 381.6 million dinars in 2022.

3. In the “Atelje 212” theater, 19 employees who are not in management positions received a coefficient based on management, which resulted in an overpayment of at least 1.7 million dinars.

4. In the institution “Center for Children’s Summer and Recovery Centers,” the salary was determined using the “labor price × points” model, instead of the prescribed method.

After the period for submitting the response report, the SAI states that the City of Belgrade:

– eliminated irregularities related to the “Center for Children’s Summer and Recovery Centers,” 13 employees of the “Atelje 212” theater and incorrectly determined coefficients for preschool institutions, except for the increase in coefficients for the calculation and payment of salaries based on management for the directors of the preschool institutions “Zvezdara” Belgrade - Zvezdara and “11. april,” New Belgrade;

– repeated the irregularities that it eliminated in the period covered by the response report, by improper payment of solidarity and one-time financial assistance to: direct budget beneficiaries, 17 preschool institutions, 31 cultural institutions and two social welfare institutions, in the total amount of 381.12 million dinars.

The SAI also states that it has notified the National Assembly of the Republic of Serbia of the serious breach of the obligation of good business conduct.

All audit reports are publicly available on the SAI website.

Grad Beograd

Državna revizorska institucija Republike Srbije

Narodna skupština Republike Srbije

Aleksandar Šapić

dismissal

irregularities

audit of operations