Government

83 of Serbia's 123 Funded Tourism Projects Missed Original Deadlines

State auditors say poor preparation, repeated extensions and weak oversight delayed tourism projects, while millions of dinars earmarked for local works were used for other purposes.

Updated: 3 min read

BELGRADE, 5 November 2026 — Eighty-three of 123 publicly funded tourism-development projects in Serbia missed their original completion deadlines, according to the State Audit Institution (DRI), which published its findings on 2 November. Only 40 were completed within the initially agreed period. The finding concerns timeliness and public-finance controls; it is not a finding that all projects failed or that their total funding was lost.

The performance audit covered the Ministry of Tourism and Youth, Sjenica municipality and the Priboj Tourism Organisation. During 2023–2025 the ministry approved more than 2.8 billion Serbian dinars in tourism project funding, around 90% for transfers to other levels of government, the official Serbian-language summary says.

Auditors reported that the ministry did not check whether projects were ready to proceed before approving support. Application scoring was insufficiently explained to establish objective selection. A proposed playground at a preschool with restricted public access also failed the audit's intended-use test. Thirty contracts received one extension and 53 received at least two, without sufficient checks of why work was late or whether revised dates were realistic.

The DRI identified separate local spending-control failures. Sjenica received 66.4 million dinars for four projects, but the audit classified 45.5 million as used for purposes other than those specified, including municipal liquidity. Two projects had not started and two remained incomplete. In Priboj, the municipality transferred 4.3 million of 24 million dinars intended for two Tourism Organisation projects, and the DRI classified the other 19.7 million as used for other purposes. Both Priboj projects eventually finished after repeated deadline extensions, with delayed contractor payments.

For all 123 projects, the ministry paid the entire agreed funding in advance. In 55 cases the money was released before contracts with contractors, suppliers or other implementers had been signed. The auditors said this removed the leverage of withholding later payments to secure performance. The ministry also did not carry out field checks during the three audited years or submit a programme implementation report to the government.

The State Audit Institution recommended assessing project readiness and credible schedules before awards, documenting evaluations, tying disbursements to implementation and improving monitoring. Sjenica and Priboj were urged to improve planning and reporting, and Sjenica to address use, transfer and return of funds. The Serbian news agency FoNet independently carried the DRI announcement, published by Insajder, and reported the same findings.

These findings are attributed to the public auditor, not a court conviction or proof of fraud by named individuals. The official summary does not establish that the amounts used for other purposes are irrecoverable losses. Material follow-up will require the full audit report, the ministry's and municipalities' replies, repayments or corrections, and evidence that projects were completed or recommendations implemented.

Sources: DRI, 2 November 2026 performance-audit notice, report reference 15836; FoNet via Insajder, 2 November 2026.

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