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Digitalisation of building permit procedures is an example of waste with a risk of criminal liability

Bratislava, 15 August 2025 – The project for the digital transformation of building permit procedures in Slovakia has so far been unsuccessful and has reached an impasse. In October 2022, the Authority for Spatial Planning and Construction (ASPC) signed a cooperation agreement with the Technical University of Košice (TUKE), with the intended outcome of digitalizing and streamlining the building permit process. Under the contract, the project was valued at over €8.5 million, with the ASPC to contribute almost €8.2 million. TUKE, as the implementing party with the necessary expertise and capacities, was to contribute €429,000. As the audit by the Supreme Audit Office of the Slovak Republic (SAO) revealed, the contract between the ASPC and TUKE contains ambiguous terminology that allows for multiple interpretations. Combined with insufficient project management, this resulted in the university delivering outputs that the ASPC refused to accept. Based on its findings, the national authority for external audit decided to refer the matter to law enforcement authorities and the Financial Administration of the Slovak Republic. Former members of the ASPC’s management may have committed breaches of the law.

“Based on the signed agreement, neither the Office for Spatial Planning and Construction nor citizens have access to the outcome of this project. It is almost absurd that during our audit, both parties disputed what was actually the subject of the contract’s performance. The competent authorities should now assess whether public resources in this case were used economically, as well as the possible abuse of power by a public official,” stressed SAO Vice-President Henrieta Crkoňová. To avoid obstructing the investigation, state auditors will not publish the audit protocols at this stage.

The ASPC had aimed to create a digital twin of the state for the purposes of spatial planning and building permits – a digital representation of utility networks, greenery, roads, etc., forming a 3D model of Slovakia’s territory. The vision was that by 2032, spatial planning, permitting, and construction implementation would become faster and simpler through the use of this digital twin.

“The research and development results in the field of building modelling and precise 3D territorial models, which are the main component of digital transformation, were not comprehensively demonstrated. The Building Authority did not specify to the auditors how and for what purpose the project outputs would be used. There is a high risk that the project was not implemented in line with the original concept and that its outputs will not be usable in further work on creating a digital map of Slovakia,” warned the Vice-President of the SAO.

The Technical University submitted the final project report within the set deadline, but the ASPC raised objections to it, and as of the time of the audit, the document had not been signed by the Office. At the same time, the Office requested the return of unused public funds amounting to €1.19 million, which had not yet occurred during the audit. The auditors also pointed out that ownership of the individual partial outputs of the project poses a significant risk.

“The Supreme Audit Office warns state institutions that clearly defined rights and obligations in contractual relationships – as well as the outputs from such relationships – are not only a prerequisite for fulfilling the subject of the contract but also for the economical use of public resources,” stated Ms. Crkoňová. The ambiguous terminology in the cooperation agreement also affected records and discrepancies in accounting. In 2023, TUKE purchased computer technology, specialised equipment, and software worth €1.4 million from public funds. Three months before the submission of the final report, this amount was reimbursed to the project account due to uncertainties in the contract.

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