State audit office: Only 9 of North Macedonia’s 62 railway locomotives are operational; losses reach 6.75 billion denars

The State Audit Office (SAO) says that Railways of the Republic of North Macedonia Transport JSC Skopje recorded losses of 331.8 million denars in 2024. When losses carried forward from previous periods are added, the total reaches 6.75 billion denars. Of the 62 locomotives owned by the company, only nine are operational.

The transport fleet also includes 16 passenger trainsets, but only five are in working order. Of the 47 passenger carriages, two are used in regular transport service.

The audit also identified shortcomings in the management and recording of some stock, including raw materials, materials, spare parts, small inventory items, packaging and vehicle tires. According to the assessment, 71% of the stock, worth 342.345 thousand denars, or 5.548.000 euros, dates from before 2019. However, its value had not been adjusted at the close of the accounting period.

Regarding petroleum products, the SAO found that their receipt and distribution are carried out in an inappropriate, unprofessional and unsafe manner, creating risks to citizens’ health and safety as well as to the environment. The measuring equipment is outdated and makeshift, and can be easily manipulated, so it does not reflect the actual quantities of fuel. In addition, vehicles are refueled using pumps whose meters have not been inspected or calibrated for a long time.

Instead of settling overdue liabilities on time, the company had followed the practice of contesting payment order decisions. This has prolonged court proceedings and significantly increased liabilities related to the principal debt, interest and court costs.