The Court of Audit released its audit report on the establishment of the Bad Assets Management Company (DUTB) and its operations in the year 2013. The Bad Assets Management Company rejects the findings. Foto: BoBo
The Court of Audit released its audit report on the establishment of the Bad Assets Management Company (DUTB) and its operations in the year 2013. The Bad Assets Management Company rejects the findings. Foto: BoBo


The Court of Audit released its audit report on the establishment of the Bad Assets Management Company (DUTB) and its operations in the year 2013. Among other things state auditors have found that the establishment of the bad bank was not based on a proposal from the Ministry of Finance. The proposal, as such, would have explained the reasons why the setting up of the bad bank had been the most appropriate solution for strengthening the stability of the banks. The Court of Audit also found that the establishment of the bad bank wasn't part of the whole strategy for the banking sector, as the strategy wasn’t even prepared.

The government and the Ministry of Finance, which were then led by Alenka Bratušek and Uroš Čufer, failed to set up a detailed oversight and reporting system on the operations of the Bank Assets Management Company. They also failed to specify the role of the Bank of Slovenia in the toxic bank assets transfer procedure. In addition, the government and Ministry of Finance also failed to argue the reasons for excluding the Bad Assets Management Company from complying with regulations regarding integrity, corruption prevention, manager bonuses and public calls.

The Bad Assets Management Company rejects the findings
As Radio Slovenija reports, the management of the bad bank is already on the counter-offensive. It says the findings of the Court of Audit don't reflect the current state. The management says that the auditors haven't taken into account the clarifications and documentation submitted by the bad bank during the auditing process.