IN BRIEF
- The State Audit Office of Latvia has drafted a review report on the creation of a militarized sculpture composition at Ādaži Military Base.
- No violations of laws and regulations were detected in the implementation of the militarized sculpture composition project; however, planning, monitoring and communication problems were revealed in its progress.
- The project was classified as a construction of a square, not a sculpture site, and it could have affected the critical assessment of the project.
- The successful implementation of the project required more thorough assessment, closer cooperation and better coordination among the National Armed Forces of Latvia, the State Defence Military Site and Procurement Centre, and the Ministry of Defence.
The development of the militarized sculpture composition at Ādaži Military Base implemented by the Ministry of Defence over several years demonstrates problems in timely planning, monitoring and communication. The successful implementation of the project required in-depth study and practical participation of stakeholders, a more thorough and coordinated approach of the National Armed Forces (NAF) of Latvia, the State Defence Military Sites and Procurement Centre (the Centre), and the Ministry of Defence. Those are findings of a review conducted by the State Audit Office of Latvia, which assessed the planning and implementation of the construction of the militarized composition, the planning and implementation process of the construction projects of the Ministry of Defence, as well as the internal control established by the Ministry of Defence over construction projects. The process of other implemented construction projects was not assessed.
The creation of the militarized sculpture composition began with a hasty proposal from the NAF to create a sculpture composition with the placement of military equipment, a base, lighting and a square in 2020. Although the process of creating the environmental site has proceeded in accordance with laws and regulations, an important question remains open whether this intention was urgent and whether it had to be created as an ensemble with a specially created area for the needs of the sculptural composition, which accounted for the largest amount of work and costs and which would not have been necessary otherwise.
“It took almost five years from the initial proposal to the full implementation of the project. The main problems were hasty planning, insufficient coordination and lack of supervision, as well as the inability to determine and implement an exit strategy from the project in a timely manner. Even after the first procurement contract for the execution of construction works was terminated at the end of 2022 due to an increase in costs (increased by 66%), the project was not suspended and a repeated procurement of construction works was organized. All these factors together caused significant delays in deadlines and an increase in the total cost of the project from 93,650 euros to 215,404 euros. Unfortunately, neither at the beginning of the project nor during its implementation, there were discussions organised in the defence department and the public space on the creation of the composition. Also, during the implementation of the project, one did not assess any possibility of abandoning the project or postponing it to another time given the new geopolitical realities. The Ministry of Defence did not pay due attention to project supervision. Although at least 18 Construction Program Implementation Reports were drafted, they were formal lacking in-depth analysis and specific tasks for the NAF and the Centre,” explained Mr Gatis Litvins, Council Member of the State Audit Office of Latvia.
The creation of environmental and sculptural sites, unlike the construction of squares, is not a common practice in the creation of defence infrastructure. The relevant project was classified as the construction of a square (in the section of car fleet and roads), not a sculpture site since the classification of such sites is not provided in the defence department. The aforementioned circumstance could have influenced the fact that the coordinators and decision-makers did not question the fact of the necessity of the square, as would have been the case if the Construction Program, reports and procurement documentation had emphasised the fact of the creation of a sculptural composition specifically. Attention could also have been diverted by the fact that another square for a parking lot was being built at this location.
In the opinion of the State Audit Office of Latvia, the Ministry of Defence should have been involved more actively and cooperated with the NAF because the project was atypical and affected not only the military environment, but also the public at large. Instead, all decisions on the concept, scope and technical implementation were left to the NAF, but the Ministry of Defence approved them formally without in-depth analysis.
Taking into consideration the request of the Minister of Defence to provide recommendations on best practice on how to improve internal processes in construction, the State Audit Office of Latvia expresses the opinion that the centralised construction and procurement planning and implementation system established by the Ministry of Defence has all the prerequisites for the successful conduct of processes. To prevent similar cases in the future, the Ministry should not increase bureaucracy but rather apply the existing control and reporting mechanisms more effectively. Ensuring both formal supervision and also delve into the essence and evaluate as well as engage in decision-making and implementation practically are crucial.
The course of events in the planning and implementation of the construction of the militarized sculptural composition can be viewed in the infographic.
The review report was prepared within the framework of the financial audit on the accuracy of the annual financial statement for 2024 of the Ministry of Defence.
The review is a summary of facts on issues relevant to the public carried out in a short time, without drawing conclusions or providing recommendations. A review report contains only findings, while an audit report contains findings, conclusions, and recommendations.
About the State Audit Office of Latvia
The State Audit Office of the Republic of Latvia is an independent, collegial supreme audit institution. The purpose of its activity is to find out whether the actions with the financial means and property of a public entity are legal, correct, useful and in line with public interests, as well as to provide recommendations for the elimination of discovered irregularities. The State Audit Office conducts audits in accordance with International Standards of Supreme Audit Institutions of the International Organization of Supreme Audit Institutions INTOSAI (ISSAI), whose recognition in Latvia is determined by the Auditor General. Upon discovering deficiencies, the State Audit Office of Latvia provides recommendations for their elimination, but it informs law enforcement authorities about potential infringements of the law.
Additional information
Ms Gunta Krevica
Head of PR and Internal Communication Division
Ph. 23282332 | E-mail: Gunta.Krevica@lrvk.gov.lv