Macedonia audit office uncovers irregularities at the mandatory oil reserves agency

North Macedonia’s State Audit Office (DZR) reported multiple weaknesses and irregularities in the Agency for Mandatory Oil Reserves during its audit of the 2024 financial statements and a compliance review. While the financial statements were deemed reliable, the audit expressed reservations about the agency’s compliance with laws, subordinate acts and established policies.

The audit found that the agency had not submitted proposals on the quantity and structure of the reserves to the relevant ministry for several years, that salary and allowance payments were not fully compliant with regulations, and that full working‑time records were improperly kept. Similar reservations were recorded in a 2018 audit; some recommendations have since been implemented, others are in progress, and one remains unaddressed.

Additional issues highlighted include a state organ that has failed to return a loan of fuel oil for more than seven years and the continual issuance of oil derivatives under crisis‑declaration decisions. The report noted legal‑framework gaps such as the lack of a methodology for valuing reserves, unclear authority between the government and the Ministry of Energy, Mining and Raw Materials, and an unresolved mandate for the agency’s director and his appointment procedure. The agency also lacks an internal audit unit, weakening internal controls, and the draft report received no comments from the audited entity.