Results of the NIK audit in RARS

NIK on the findings of the audit in RARS TVN24

The Supreme Audit Office has issued a negative evaluation regarding the oversight and management of the Government Agency for Strategic Reserves’ operations for the years 2021-2024, as stated by NIK director Rafał Ostrowski.

During a press briefing on Tuesday, Ostrowski clarified that RARS made purchases without adhering to competitive selection criteria for contractors, which fostered corrupt practices and led to mismanagement.

Findings from the NIK audit in RARS

Due to these irregularities, RARS misused over PLN 70 million, acting ineffectively and without economic prudence, which included expenditures on food rations for Ukraine, disposable gloves, and vehicles and services intended to assist war victims.

– Numerous key purchases were sourced from companies that lacked expertise in the products procured by RARS. For instance, a cleaning products manufacturer provided food rations as part of aid for Ukraine, and an event management company supplied military tents, knives, goggles, and camouflage nets for the Ukrainian army – remarked Rafał Ostrowski, director of the Department of Agriculture and Rural Development at the Supreme Audit Office.

Ostrowski also noted that contracts worth millions were awarded to entities identified by superiors through verbal communication or on yellow sticky notes.

Additionally, RARS has failed to implement internal regulations regarding an „anti-corruption shield” that would facilitate the vetting of potential contractors involved in procurement processes.

RARS did not establish clear protocols for collaboration with the CBA. The agency selectively forwarded contractor information to the CBA for validation. Consequently, opinions generated by the CBA – such as „with no comments,” „with reservations,” and „negative” – were not binding for the agency due to the absence of formalized purchasing policies and a lack of an agreement with the CBA. This resulted in circumstances where RARS proceeded to sign contracts with bidders despite negative evaluations from the CBA. NIK (Supreme Audit Office) conducted an in-depth audit on the formation of strategic reserves, specifically regarding food rations and nitrile gloves. According to the post-audit statement, from 2021 to 2024, RARS procured food rations amounting to PLN 66.6 million, with PLN 16.6 million in 2022 and PLN 50 million in 2023 intended for shipment to Ukraine. Ultimately, a contract for PLN 50 million gross was executed. The supplier procured food packages in Spain, incurring costs of PLN 17.3 million, including transportation. This indicates that RARS paid 189% more than the supplier’s actual expenditure. Between 2021 and 2024, the agency acquired nitrile gloves for a total of PLN 217.3 million, with PLN 215.8 million spent in 2021 alone. NIK scrutinized three contracts totaling PLN 12.2 million net, awarded through two procurement processes. The acquisition of nitrile gloves occurred in violation of the principles outlined in art. 44 sec. 3 item 1 of the Public Finance Act and the „COVID Instruction.” NIK’s audit findings revealed that in the initial procedure, one bidder’s offers for nitrile gloves were rejected due to being too costly. Shortly thereafter, the same bidder submitted another proposal for the same product range at a price reduced by PLN 4.6 million (over 25%) compared to their first offer. The President of RARS subsequently signed a contract with this bidder for PLN 13.5 million net, agreeing to an advance payment of PLN 5.4 million (40% of the total fee). Similar patterns were observed in vehicle purchases. In July 2022, the Director of the Operations Office acquired 9 delivery vans and 2 refrigerated trucks from a company in Sulejówek for PLN 5.7 million gross. These vehicles were designated for transporting donations and humanitarian aid to Ukraine. „Although the agency had its own licensed drivers for this type of vehicle, it entered into a leasing agreement for the purchased vehicles and a transportation service contract with the aforementioned company from Sulejówek. Consequently, from November 9, 2022, to June 30, 2024, the company paid RARS PLN 1.4 million for the vehicle lease, while the agency disbursed PLN 5.7 million for the transportation services. Under the leasing agreement, the agency incurred fuel expenses amounting to approximately PLN 2.8 million. Ultimately, from November 9, 2022, to June 30, 2024, the agency’s total expenses reached PLN 14.2 million,” NIK reported.

KO comments on NIK’s oversight

During a press conference preceding the Supreme Audit Office, KO MEPs Michał Szczerba and Dariusz Joński highlighted that the audit revealed RARS – under the supervision of then Prime Minister Mateusz Morawiecki – was intended to serve as a „conduit for financing the PiS election campaign.” – Every bit of money allocated to RARS was intended for PiS politicians and affiliates to seize. The goal? To invest in the election campaign – stated Joński.

The MEPs pointed to the procurement of disposable gloves as a prime example of wasteful practices. Citing the testimony of Paweł S., the founder of the Red is Bad brand, Szczerba noted that one grosz was earmarked for the PiS campaign from each pair sold. Joński added that it was the RARS management that determined the contractors.

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