Costs balloon after merger of National Theatre and State Opera: watchdog

13-03-2017 updated

Hoped for savings from the merger of the National Theatre and State Opera failed to emerge, the spending watchdog, the Supreme Audit Office has warned in its latest report. The merger took place in 2012 and costs initially fell by just under 1.0 percent. Afterwards though they rebounded strongly. Preparations for the merger also cost around 1.4 million crowns. The National Theatre has explained the rise in costs as stemming mostly from increased wages. The watchdog also pointed to dubious drawing on reserves, flawed accounting of foreign trips and expenses, and other accounting errors in the accounts.