5,718 euros for one day – fuss about advice from Salzburg AG
Salzburg, December 21, 2022 | The internal consulting costs of Salzburg AG became a political issue on Wednesday after the publication of a report by the state audit office. The company paid daily rates of up to EUR 5,718 for consultants, and a total of more than EUR 28.3 million was spent on consultations between 2018 and 2020. A treat for the opposition in the state parliament: “While Salzburg AG is constantly increasing its prices, it grants its advisers indecently high fees,” according to the SPÖ.
Daily rates from 1,600 to 5,718 euros
The auditors have noticed a sharp increase in the number of consultancies purchased. In 2018, Salzburg AG spent EUR 5.3 million on this, in 2019 it was EUR 9.5 million and in 2020 more than EUR 13.5 million, as the report shows. IT projects and advice on the realignment of the company from an energy and infrastructure service provider to a digital technology company with a strong focus on growth are responsible for the increase. With regard to the daily rates paid by Salzburg AG – which range from EUR 1,600 to EUR 5,718 – the Court of Auditors called for “in future to critically question the appropriateness of prices for strategic projects in order to reduce the risk of inappropriate prices”. He also made the recommendation to “make significant use of the specialist skills and resources available in the company. External consultants should only be called in where an increase in quality and the probability of success of a project can be expected”.
SPÖ: Every home builder gets more offers
A further point of criticism is the awarding of the advisory services, because in the majority of the randomly examined cases only one single offer was obtained. In addition, the selection of consultants is partly non-transparent. In addition, Salzburg AG states that since a recommendation was made by the internal audit department, they have been anxious to obtain comparable offers. In addition, ask for certain services or products with only one provider. The examiners recommend “using the advantages of competition and obtaining several offers to ensure quality and reasonable prices, especially in the case of direct awards”.
“People are groaning under the high energy prices, the high housing costs, the high tax burden – and Salzburg AG shows no generosity,” replied Salzburg SPÖ boss David Egger. Every home builder gets several offers and negotiates with potential clients, except for the management of a leading Salzburg company, according to the head of the largest opposition party.
“It seems that when it comes to the Salzburg AG consultant orders, it is not what you can do that decides, but who you know,” said FPÖ state party leader Marlene Svazek. Such action would be negligent and impossible in the private sector. “Water and energy are becoming more expensive, and Salzburg AG is pouring out the cornucopia over related consultants.”
(bf/pa)