The Chamber of Accounts of the Republic of Azerbaijan has identified significant investment and procurement violations within Azerenerji OJSC following a comprehensive audit. The investigation, which spanned the period from 2022 to 2024, scrutinized funds exceeding 255.8 million manats, uncovering systemic issues in project management and financial oversight.
According to the Operative Information Center-OMM, the audit highlighted that several Small Hydropower Plant (SHP) projects were initiated without proper technical and economic feasibility studies. This lack of planning resulted in seven completed stations operating at only 14.7% to 46% of their production capacity, leading to reduced profitability and increased operational costs. Furthermore, the Chamber noted that procurement contracts often included unauthorized expenses and works that were either unplanned or never executed, violating state procurement regulations and construction standards.
The audit also revealed procedural gaps in the tender process, where documentation failed to meet regulatory requirements, and inconsistencies were found in the management of state property and accounting. In several instances, materials were not properly handed over to responsible personnel, and assets were utilized without being officially registered. Although seven SHPs are currently operational, the Chamber found that their formal acceptance procedures remain incomplete. Consequently, the Chamber of Accounts has recommended immediate measures to rectify these deficiencies, optimize costs, and enhance the production capacity of the stations.
Azerenerji OJSC is the primary power producer and distributor in Azerbaijan, managing the country's electrical grid and generation facilities. In recent years, the company has been heavily involved in the restoration of energy infrastructure in the liberated territories of Garabagh and East Zangazur. The Chamber of Accounts, as the supreme audit institution reporting to the Milli Majlis (National Assembly), regularly monitors the efficient use of state budget allocations to ensure transparency in large-scale infrastructure projects across Azerbaijan.
