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Labour Ministry Cancels Another Contract with Social Enterprise
Sunday 11 April 2010 Zoom in | Print page
Bratislava, April 11 (TASR) - Slovak Labour Ministry wants to cancel a contract with a second (out of eight) social enterprises. After the cancellation of a contract with Arvik in December 2009, the Horehronie (Upper-Hron region) Social Enterprise follows due to its failure to report extra income from its facility in Cierny Balog (Banska Bystrica region).
"Based on a quarterly control of the adherence to the contract conditions showed grave mistakes from the side of the pilot social enterprises, due to which the European Social Fund (ESF) and the Slovak Labour Ministry were forced to cancel the contract with the Horehronie Social Enterprise," said Labour Ministry spokesman Michal Stuska.
Another social enterprise in Revuca (Banska Bystrica region) could be problematic too, according to the results of the European Commission report in December. The report highlights suspicions that the company was selling its products below market price, and the financial connection between the enterprise's management and its customers and suppliers. "If the price was adjusted to the market price, the project would potentially generate much bigger revenues, which would have to be returned to ESF, based on the project contract," the EC states in its report. A social enterprise can only generate revenues limited by rules. Everything produced above these limits has to be transferred to ESF.
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