The Ministry of Finances is compiling a new law on the public financial inspection which aims to enhance the effectiveness of the war against informality and financial mismanagement by state institutions. The draft law has been compiled by the Ministry with the close assistance of the European Union and according to experts it is an important element of the financial reform which is being undertaken by the government.
The main objective of the law is to assist and improve the financial management by public units and to protect them from possible frauds, theft, property destruction, corruption and the abuse with the power. The law also provides new guidelines for the improvement of the public financial management and the application of public funds.
Subject of this law will be public governing units, state societies, non-governmental organizations and joint authorities which are owned, controlled or financed by public governing units. These subjects will be controlled only in the case when they are granted with governmental funds, funds by the European Union or funds in the framework of an international agreement.
The financial inspections will be applied by the officials of a certain public unit who are charged with the responsibility to inspect the financial aspect at the Ministry of Finances. A financial inspection may be undertaken only after a state institution makes such request, based on evidences of a financial mismanagement at a certain public unit provided by the internal audit structures. Such an inspection may start even after the request made by the European Office against Fraud for EU funds or after the request of legal personas, organizations, ect.