Montenegro’s Health Ministry has received a negative audit opinion after the State Audit Institution identified shortcomings in financial management, procurement and programme oversight, including the implementation of healthcare projects financed through the United Nations Development Programme (UNDP).
The audit examined €8.22 million transferred to UNDP between 2017 and 2025 for healthcare development. Of that amount, approximately €2.4 million was paid to suppliers and consultants through implemented project activities, while €5.82 million remained unimplemented. The findings do not establish that the funds were lost or misappropriated. Instead, they indicate delays in converting allocated financing into healthcare equipment, digital systems, consulting services and other investments.
Audit Identifies Financial and Procurement Weaknesses
The State Audit Institution issued 32 recommendations addressing accounting practices, procurement procedures, internal controls and project management. The findings highlight the challenges of implementing publicly funded projects, where financing commitments do not necessarily translate into completed investments or improved services.
Healthcare projects can involve complex tender specifications, software integration, equipment installation and long-term maintenance arrangements. Although international organisations can provide procurement expertise and access to specialised suppliers, government institutions remain responsible for monitoring budgets, project milestones and delivery.
Implementation Capacity Affects Future Investment
The unimplemented balance comes as Montenegro prepares a broader cycle of healthcare investment and seeks to make greater use of EU grants and international development financing. Development banks and EU institutions assess not only governments’ ability to secure funding but also their capacity to deliver projects. Weak implementation can delay future disbursements or create a need for additional project-management structures.
Similar execution challenges affect Montenegro’s transport, water, environmental and municipal infrastructure programmes, where approved capital budgets do not always translate into construction at the expected pace. In healthcare, delayed implementation can affect hospitals, medical staff and patients by postponing the introduction of equipment, digital systems and other planned improvements. The ministry’s immediate task is to implement the audit recommendations and establish a clearer timetable for the remaining UNDP-supported activities.
