From an unpaid fine to the sense of impunity [Experts panel at NIK]

An experts panel devoted to the collection of  fines and administrative penalties was held at the NIK headquarters in Warsaw. The auditors investigated how the fines were imposed and then collected in eight provinces in case the payment was not voluntarily made. ”We were alarmed that so many unpaid fines expired” - Janusz Madej from the NIK Regional Branch in Opole explained at the meeting. ”We fear this approach may strengthen the sense of impunity with the public. Therefore, we asked what should be done to raise effectiveness of public bodies.”

Statements of Janusz Madej from NIK and Grzegorz Mróz from the Ministry of Finance

Payments of fines

Grzegorz Mróz from the Ministry of Finance argued that the best solution would simply be to encourage people to pay their debts. The system based on simple reminders may work well in case of most citizens. ”They should feel that the state is close and wants to help them. Why not remind somebody who hasn’t paid a fine before starting the debt collection procedure? Let’s use e-mails, SMSes or just phones” - postulated Mróz. In his opinion, most people will respond positively to such reminders and pay debts of their own free will. The Ministry of Finance is already working on proper technical solutions.

On the other hand, how about the people who don’t want to pay their fines even after repeated reminders? Marcin Łozowski from the Tax Office in Opole drafted a portrait of a typical debtor based on local statistical data: ”This is a man of 25 to 30 with about three unpaid fines on his account. According to experts, such persons form a group which deliberately avoids paying fines. Why? Debts expire already after three years. Sanctions for default are insignificant and the costs of potential debt collection are rather low (about seven percent of the debt). A person who resolves not to voluntarily pay a fine of PLN 200, will have to make an additional payment of only PLN 14 in case compulsory debt collection is implemented.

Experts say that a good solution would be to make the debt collection costs real. For instance, in Germany they do not charge interest on a fine but check the costs of work of the official who had to devote his or her work to handle the case. Only then the amount is added to the fine that was not voluntarily paid. Another solution would be to use information on the assets of the person avoiding payment. This, however, requires a consistent on-line system which is only being developed. ”We are halfway there” - admitted the representative of the Ministry of Finance.  

The panel participants had no doubts that both solutions needed acceptance of the public. In the first case, people have to understand that increasing extra fees is targeted against dishonest people and that the recovered money will return to the society at the end of the day. In the second case, it is the citizens who should decide what kind of a state they want: blind and helpless or the one that can see a lot but is effective at the same time.

The main objective of the NIK audit was to evaluate measures taken by administrative bodies to obtain income due to the State Treasury coming from fines and selected penalties. The inspectors have taken under the microscope the Ministry of Finance, eight Province Offices, eight Poviat Police Headquarters and 16 Tax Offices. When ready, the post-audit report including detailed results will be submitted to the Sejm and brought to the public attention.