Weak financial management, inaccuracies in asset registers and accounts receivable, and inadequate internal controls are among the problems identified by the National Audit Office (NAO) at the regional water utility company Hidrodrini for 2025.
The report, which contains 14 recommendations, was discussed by the parliamentary Committee on Oversight of Public Finances. During the review, the company’s officials were questioned about the findings, while MP Eman Rrahmani called for the matter to be referred to the Prosecution.
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Presenting the report, committee chair Besian Mustafa said the audit had highlighted significant shortcomings in the accuracy and presentation of the financial statements.
Mustafa presents the audit findings
“The audit of Hidrodrini Regional Water Supply Company for 2025 identified serious problems with the accuracy and presentation of the financial statements. These include assets that were not recorded or were overstated, inaccuracies in accounts receivable and property records, the improper presentation of grant income, and a lack of necessary records and disclosures. Weaknesses were also identified in financial management and internal controls, including contract management through e-procurement, the low number of contracts with consumers, and the failure of internal audit mechanisms to function. The 2025 report contains 14 recommendations: two new ones, eight repeated from 2024, and four partially repeated,” Mustafa said.
One of the report’s main concerns is the gap between the value of assets recorded in the financial statements and the value shown in the asset register.
Asset value discrepancy of €1,045,549
“The statement of financial position lists non-current assets at €39 million, while the asset register shows a value of €38 million. The difference is €1,045,549. The company last assessed its assets in 2005. Of gross accounts receivable totaling €17,188,428, more than 97% were over a year old, and expected losses had not been recognized. A draft regulation on provisioning for these accounts was approved, but it has not been finalized because there was no board of directors. In 2025, regular reconciliations with suppliers were not carried out, so accounts payable do not accurately reflect the situation,” Mustafa said.
Hidrodrini Board Chair Qëndresa Kukaj said some of the recommendations had been addressed, while work on the others was continuing.
Kukaj: Some recommendations have been addressed
“The issue of contracts not being recorded in e-procurement has been addressed, and all contracts are now managed through the system. We can provide evidence of this. The absence of an audit committee has also been addressed, since the board was appointed in April. The inaccurate recording of plant assets and the other findings have been partially addressed; management has been asked to provide supporting documents immediately. Three findings have been addressed, and six are in progress. Regarding unidentified properties, management has been instructed, and the chief executive has prepared a complete list of the company’s properties, but the matter is still being addressed. Consumer identification has also been partly resolved: some income recorded under unidentified consumers belongs to schools and universities,” Kukaj said.
Chief Executive Officer Dri Cena said the company had made progress compared with previous years. He acknowledged that problems remained, particularly with signing contracts with consumers.
According to Cena, before he was appointed to the role in 2023, the company had not been audited by the NAO.
Cena says the NAO conducted its first audit in 2023
“I was appointed chief executive officer in June 2023. Before that, the company had not been audited by the NAO, perhaps for more than five years. The NAO’s first audit was conducted in 2023. Previously, audits were carried out by private auditors, whose opinions differed considerably from the NAO’s. The findings from 2023 to 2025 show many improvements. As for contracts with consumers, their number is very low. As the board chair also said, many consumers are reluctant to sign contracts, but we continue to try to persuade them,” Cena said.
The report also prompted reactions from committee members. Rrahmani called it concerning and asked the committee to refer it to the Prosecution for investigation.
Rrahmani calls for a prosecutorial investigation
“The report is concerning. The committee should also send it to the Prosecution and ask it to look into the matter, because the company did not accurately present its financial statements on its balance sheet. There are grounds for an investigation. Three boards have served during this government’s term, but the problems identified have not been resolved, and the company has not been put on the right track. These are very serious shortcomings. According to the National Audit Office’s audit, a discrepancy of more than €1 million was found in accounts receivable, meaning the company may have committed fraud,” Rrahmani said.
The committee is now reviewing the audit report on the annual financial statements of the Trepça company.
