Supreme Audit Office of the Slovak Republic

The SAO SR audited the handling of service flats at the Ministry of the Interior of the SR, the Ministry of Defense of the SR and its organization BARMO, which manages the service flats of soldiers. Based on the findings, it can be stated that the sales of service flats were carried out in violation of the law and uneconomically. Both ministries purposefully (mis)interpreted laws 189/1992 Coll. on the Adjustment of certain Conditions related to the Lease of Flats and housing Compensations, and 182/1993 Coll. on the Ownership of Flats and non-residential Premises.

They unjustifiably changed the character of the service flats and subsequently sold them to tenants. Between 2015 and 2018, they sold more than 400 service flats at residual prices, costing the State an estimated million euros. The Ministry of the Interior sold 217 apartments, and the organization BARMO 212 apartments. However, in the same period, the Ministry of the Interior acquired 57 other service apartments worth EUR 4 mil.

Based on the audit results, the SAO SR called on both ministries to stop the illegal sale of service flats. The SAO SR reported suspicion of fulfilling the factual substance of the criminal offense of breach of duty in the administration of foreign property to the organs active in criminal proceedings.

The SAO SR illustrated the differences in the comparison of the average market price and the purchase price on a sample of 10 flats in larger cities. In these service apartments alone, out of 429, the State lost more than half a million euros.