Trepça operated with an average monthly loss of over half a million euros in the period 2019-2021

The National Audit Office (NAO) has published the audit report “Financial and operational performance of POE Trepça j.s.c” for the period 2019-2021. The results of this audit indicate that Trepça j.s.c. has not efficiently used and refined mining resources, thus not attaining the aim of overcoming the operation with an average monthly loss of €620,307 and achieving profitability.

Trepça j.s.c has not managed to provide proper prerequisites for operating which would ensure efficient and profitable use of mining resources.

The audit results have highlighted weaknesses and poor effectiveness in the internal control system that would enable high productivity in ore extraction, refinement and further milling.

“The analyses of key financial performance indicators have come out negative for the difficult financial situation that has followed the company over the years. Outdated technology and infrastructure at Trepça j.s.c., as well as the lack of capital investments have led to low productivity. Whilst the large leakages (losses) of metals in the tailings during the ore flotation process were as a result of outdated technology, lack of capital investments and failure to standardize the work process in flotation”, is stated on the report.

In addition, Trepça j.s.c. has not managed to ensure optimal management of human resources in the production process. This is due to the lack of analysis and identification of needs for staff engagement in production in business units, aiming to increase productivity.

The announcement of unplanned competitions in the business plan, exceeding the number of the staff employed in business units compared to the announcement of the public competition, as well as the engagement of workers with specific jobs and tasks for regular positions without announcing the public competition are some of the numerous irregularities of the human resources management, which had also resulted in additional expenses during the period 2019-2021.

Regarding this audit, the Auditor General, Vlora Spanca, has stated that Trepça j.s.c. has not managed to establish adequate internal systems and controls which would support the achievement of positive financial and operational performance, with an emphasis on the process of production.

In the audit report, 22 recommendations were given, 3 for the Government of Kosovo and 19 for Trepça j.s.c., with the aim of improving the production process in general and strengthening internal controls in the enterprise.

Please find the full audit report “Financial and operational performance of POE Trepça Sh.A j.s.c. here.