"Arena Chișinău: Losses of millions of lei and systemic irregularities
The conclusions are contained in the report of the Court of Accounts on the results of the audit. It emphasizes that the total expenses for the construction of the complex, including tax and customs privileges granted by the state, amounted to about 1.2 billion lei.
The authorized capital of the company Arena Națională SRL, which manages the complex, amounts to 965.6 million lei, but it is experiencing financial difficulties. Operating revenues do not cover expenses – depreciation of fixed assets and remuneration of employees.
Mistakes at the planning stage
The auditors note that at the stage of construction planning, serious mistakes were made in the feasibility study, cost and risk calculations, which were performed superficially.
“Due to the lack of effective control, many violations were committed, such as registration of imported goods, unauthorized use of the adjacent land plot, non-transparent public procurement procedures, lack of electronic ticket and spectator accounting system – and the capacity of the main hall exceeds 5,000 people. Unreasonable expenditures on salaries were also revealed, the management received financial incentives that were not properly formalized,” the report says.
The document also points to insufficient control on the part of the authorities. The commission for monitoring public-private partnerships met only twice during the period when the Ministry of Education and Research supervised the project, and when the Ministry of Infrastructure and Regional Development took over control, it did not convene at all.
