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Radicova: Social Enterprises Fail to Foster Job Creation
Wednesday 17 March 2010 Zoom in | Print page
Bratislava, March 17 (TASR) - Pilot social enterprises have failed to support job creation, as state funds that have hitherto been employed to that purpose have been spent in an ineffective manner, Opposition SDKU-DS party's election leader Iveta Radicova told a press conference on Wednesday.
The enterprises have also come under criticism from the European Commission, which has sent the Slovak Labour, Social Affairs and the Family Ministry the first results of its audit of the Employment and Social Inclusion Operational Programme, from which the enterprises are funded.
In line with information that has appeared in the media, the Commission chided Slovakia for the amount of state assistance provided to the enterprises and warned the country that it might not refund money paid out to the enterprises under the scheme.
"The Commission is stating what the Opposition has been saying for a long time, namely that state aid for social enterprises is resulting in an unfair competitive environment and unfair competition," she said, adding that a number of public procurement competitions held under these enterprises were not transparent and failed to comply with the EU's criteria.
Labour, Social Affairs and the Family Minister Viera Tomanova said after a Government session earlier on Wednesday that she sees no reason for Brussels not to reimburse the money spent on Slovakia's eight pilot social enterprises.
She conceded, however, that the issue of unpermitted state assistance, whose level has been criticised by the Commission, may concern a firm called ARVIK. The ministry unilaterally terminated its contract with the company at the end of 2009, however, she said. "Another social enterprise may be concerned as well, but such activity can always be disengaged and others can continue," said Tomanova.
The enterprises are also being scrutinised by the Finance Ministry. As the inspections haven't been completed, Finance Minister Jan Pociatek has been reluctant to specify respective shortcomings. "The findings are of different types," he said.
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