Real Property of the National Defence System

In the opinion of the National Audit Office of Lithuania, the management of the state real property with a value of more than LTL 1 billion by institutions of the national defence system is insufficiently effective. According to Deputy Auditor General Mr. Arūnas Keraminas, deficiencies of legal regulation result in failure to adopt timely decisions of the Government and institutions of national defence concerning transference of real property suitable for use but unnecessary for the performance of the national defence functions to other institutions, meanwhile property which has become functionally obsolete and has been recognised unsuitable for use has not been liquidated and has not been depreciated for almost ten years already.

The auditors established that over one fourth of premises in the possession of the military are not used for the performance of the national defence functions. The amount spent last year for the maintenance of the premises which are not in use totals to more than LTL 0.5 million. Over half of the premises which are not used are obsolete and not suitable for use. The Government resolutions passed during the period from 2002 through 2004 directed the military to liquidate and write off the afore-said property, however, this has not been done yet.

The auditors also noted that no standard areas of administrative premises and working rooms have been established in the armed forced of Lithuania hence there are no objective criteria to be observed so that the premises are distributed in the most rational way. For example, the number of volunteer soldiers is more or less equal in all unit companies of the National Defence Volunteer Forces; however, the area of administrative premises allocated thereto differs up to five times.

The area of residential premises which are in disposition of the institutions of national defence totals to 33 thousand m2, of which only a little more than half are used for the purposes of the national defence system. Pursuant to an order of the Minister of National Defence, official housing is not provided to soldiers as from 2009; instead, the system of accommodation allowance has been introduced. Accordingly, soldiers who could be accommodated in service flats receive accommodation allowance. At present persons who are not related to the national defence system live in a number of such flats paying inadequately low rent. For example, a person in a two-room flat in Vilnius pays LTL 66 to 216 per month, meanwhile monthly rent of equal premises in a private sector varies between LTL 600 and 1500.

The National Audit Office has recommended to the Government to take relevant decisions on transference of the real property which is not necessary for the performance of the functions delegated to the institutions of national defence to other institutions. It has also been proposed to decide whether the official housing system should be replace with the system of accommodation allowance. The Ministry of National Defence has been urged to take measures to reduce real property management costs.

Public audit report is available in Lithuanian:
Real property of the national defence system