Support For Investment Through State-owned Ltd-companies Created Losses

Bratislava, June 4, 2021 - The method of supporting investment projects through various limited liability companies of the Ministry of Economy from the state budget is not sustainable and transparent. The Supreme Audit Office of the Slovak Republic (SAO) after the reviews of MH Invest, Ltd. and MH Invest II, Ltd. and their founder cannot confirm the economy and effectiveness of their financial management and audit. Revenues of these companies no longer cover the costs of their operations, but their Supervisory Board or the General Assembly did not pay attention to long-term losses. At the same time, the companies outsourced their tasks, such as the purchase, consolidation and sale of land, or the construction and maintenance of industrial parks (e.g. Nitra or Haniska). Communication with local municipalities and regions also failed. The overall strategy of the state and the ability to be prepared for a potential investor are questionable. The National Audit Authority therefore recommended to the Parliament to ask the responsible Ministry to submit a comprehensive analysis, as well as a strategy to support major investment projects from the state, respectively public budget.

"We consider it right that we can support the arrival of foreign investors, we respect the government's decisions to support, for example, the park in Košice. However, as these are public funds, they must follow transparent rules", emphasized the Vice-chairman of the SAO SR Ľubomír Andrassy.


The full text of the press release about this issue in Slovak language is available here. Use the Google icon in the top bar for automatic translation.