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Despite the bizarre circumstances under which the folder with the invoices for the costs of the trade union of the employees at the Public Power Corporation disappeared during the inspection, the auditors of the public administration still managed to carry out their inspection. Their report was submitted yesterday to the Minister of Environment, Energy and Climate Change Tina Birbili, who immediately upon its receipt ordered suspension of the funding of the trade union by the company.

Based on the data presented in the 100-page report the chief auditor of the public administration Leandros Rakindzis defined as illegal any funding of the trade union by the company during the period 1999-2010, amounting to 31.2 million euros. The most flagrant of these is the funding in the amount of 3.1 million euros, which unionists received last year when the economic crisis in the country was the most violent.

The inspection commissioned by the Ministry and carried out by the auditors found out parking and gasoline costs made for the cars of company employees or their children, costs for excursions or accommodation costs made in favour of third parties, costs for printing magazines that were not sent to the recipients, costs for unrealized projects, and for the purchase of flowers, perfumes, drinks and computers without a clear reason for these purchases and who exactly received them.

According to the chief auditor, the loan of 500,000 euros, which the union has received from the company management, is illegal too. The inspection raised a tax matter in connection with the reduced prices of electricity, which apply to employees. The specific issue is submitted to the Ministry of Finance for consideration.

According to the chief auditor, the funding of the trade union in the amount of 14.1 million euros through the collective agreement and the decisions of the management board of the company is illegal, because there is a law that forbids employers to fund the trade unions. At the same time, the company did not check and know how these funds that are often used for strike actions and legal services, possibly directed against the company itself are spent. This column includes 5 million euros allocated in 2005 and 2006 for social programs and agricultural tourism, which would have involved the staff of the company as a reward for its contribution to the successful hosting of the Olympic Games. This specific funding is also defined as illegal by the chief auditor for the same reasons.
 
The same list also includes:

- funding a project of the trade union organization worth 300,000 euros, which was not implemented, but the amount was not returned

- funding presentations and promotions in the amount of 1.3 million euros. According to the report, the requested amount was granted directly to the company that provided the services with no proof of their implementation. Therefore, the auditors believe that this, in fact, is a direct funding of the trade union in violation of the law.

- funding the organization for social activities at the company in the amount of 11.2 million euros. The auditors believe that it is nothing more than a legal form, the independence of which ensures direct financing by the company in violation of statutory prohibition. Moreover, the costs are not justified and in many cases the invoices were issued for luxury trips, expensive dinners, gifts, etc. or for covering the costs of third, ineligible persons.

- deducting a percentage from the employees’ salaries in the amount of 4.18 million euros. The chief auditor believes that deducting a percentage from the employees’ salaries in favour of the trade union and the direct transfer of this amount to the organisation is unconstitutional, illegal and an example of abuse.

Moreover, the loan in the amount of 500,000 euros, which according to the report of the auditor does not correspond to the company’s goals, is not consistent with the activity of the company and actually it is an indirect financial support to the trade union. Furthermore, the repayment of the loan is not secured by the funding to the union once it is considered illegal.

The report of the auditor does not confirm the complaints that members of the board of the union had received additional amounts from the employees, and that the building that houses the organisation was donated by the company. The issue of the low price of electricity, paid by the current and former employees of the company, remains.

The paradox here is that the authorities were fully informed of all such funding and preferences, because the documents were filed in the registry of the District Court or the Labour Inspectorate. The data from the collective agreements were sent to the Ministry of Finance because they affect the incomes policy. They say from the company that they had never received any remarks or comments regarding the content of the collective agreements.

Following the disclosure of the auditor’s report, they stated from the company that the results of the inspection are being considered very carefully, and that all funding is terminated from early 2011 until the matter is resolved.