Overpayments, financial irregularities by Ministries at intolerable level - Goolsarran

Overpayments, financial irregularities by Ministries at intolerable level – Goolsarran

Mar 06, 2014 News

Several Ministries have been hauled before the Public Accounts Committee (PAC) in recent weeks based on financial irregularities documented in the reports of the Auditor General (AG).
The AG Report has shown that among some of the glaring financial irregularities, there were instances where millions of dollars in overpayments were made to contractors for work that was not completed.

Former Auditor General, Anand Goolsarran

Considering this, Former Auditor General, Anand Goolsarran is calling for the implementation of an organized internal audit system to police the accounting systems of Ministries daily. This is in an effort to prevent some of the financial indiscretions.
Just recently senior officials of Region One Barima-Waini were summoned before the body based on the examination of the 2011 Auditor General Report.
The PAC blazed the Regional officers for an engineer who approved the overpayment of $1M to add a new section to the Regional Administration Office at Mabaruma, which has not been done.
Previous reports said that the contract had been awarded to B. Boodhoo General Construction. The Regional Executive Officer (REO), Nigel Fisher, informed members of the Committee that the engineer, unfortunately, cannot be located.
Even the Permanent Secretary of the Ministry of Culture Youth and Sports, Mr. Alfred King, was made to face the music last month after an intense grilling by members of the Committee on the overpayment of salaries to staff members.
These monies are still to be recovered. According to the reports, 10 staff members were overpaid.
King explained that rigid systems have been implemented since the incident. But he was unable to indicate whether the outstanding balance could be recovered.
PAC members from both the Government and the Opposition’s side have been extremely critical of the Permanent Secretaries and other representatives of the Ministries for the irregularities. They expressed clearly their disapproval for such intolerable behavior when monies are overpaid or cannot be found.
In an invited comment, Goolsarran, a Financial Analyst said that based on these findings, it is a clear indication that there is a serious need for international accounting standards and an organized system of internal audit for the government agencies.
Firstly, Goolsarran explained that agencies of the state according to the Constitution have to be audited by the Auditor General (AG).
“Recognizing that the AG may have capacity issues, there are cases where he contracts the services of chartered accountants in public practice to audit certain entities, especially public enterprises, on his behalf and to report the results to him.”
In addition to this, “The accounting system of the Government has been inherited from the British, and since our Independence there has been little to no change or modification to bring it in line with international best practice. After 47 years you still have the old system although there have been so many developments in public financial managements. It is obvious that there is a need for our system to be reformed so that they can fall in line with international best practices.”
The anti-corruption advocate noted that Minister of Finance, Dr. Ashni Singh is required to promulgate accounting standards as required by the Fiscal Management and Accountability Act. “He has, however, not done so to date. My recommendation is for the adoption of International Public Sector Accounting Standards (IPSAS).”
IPSAS, he explained seeks to improve the quality of financial reporting. This in turn results in a more accurate assessment of resources allocated by the Government. Goolsarran stressed that this is all in the name of increasing transparency and accountability.
He continued, “We also need to have an organized system of internal audit systems to police on a daily basis ministries, departments and Regions, especially large Ministries such as the Ministries of Health, Agriculture and Public Works. The Ministry of Finance has been trying to set up a centralized internal audit system but, like the predecessor Inspectorate Section, it is unlikely to gain any measure of success, especially given this day and age where internal audit has assumed a highly professional role.”