Internal Auditing watchdog to repair Ministries’ “eroding” integrity

May 02, 2014 News

By Kiana Wilburg

The lack of compliance with the Auditor General’s recommendations by some ministries to correct financial irregularities, has only served to corrode the faith in its integrity.

Finance Minister Dr. Ashni Singh

But an intervention was started last year by the Ministry of Finance with the establishment of an Internal Auditing Division.
The Minister of Finance, Dr. Ashni Singh, during his 2014 budget speech, explained that their internal audit capability continues to be strengthened with a high level oversight committee, the Internal Audit Division. The centralized internal audit staff will be tasked with reviewing findings in the Audit Office’s annual report and following-up with Government Agencies to ensure compliance with the relevant laws and regulations.
There has been an extensive debate over the fact that year after year, the Auditor General highlights certain financial irregularities and only some are complied with. It is a pattern that has even worried the Speaker of the National Assembly, Raphael Trotman. Trotman had expressed to this publication that such behaviour would only undermine the democracy of the country if it is not corrected.
Many Opposition members have even asked why the Auditor General has not made effective use of his powers to ensure that Ministries comply with his recommendations and make sanctions when necessary.
However, Auditor General Deodat Sharma explained to this publication that he is not endowed with such powers. He clarified that his office serves as the watchdog of the national purse ensuring that the money allocated to any sector is not wasted, but spent wisely.
He added too that under the Audit Act, he has the power to obtain information, evidence, inspect bank accounts and access premises. He insists that nowhere in the Audit Act does it give him the power to make agencies comply with his recommendations.
He explained that Part VI of the Act, which speaks to offences, makes clear what can be deemed an offence in the eyes of the Auditor General. The Audit Act specifies legal penalties for anyone who intentionally prevents the Auditor General or an authorized officer in the discharge of official duties, does not comply with any lawful requirement of the Auditor General, provides misleading information, or misrepresents his or her level of authority. If convicted of any of the said offences, a person may be fined up to two hundred thousand Guyana dollars (G$200,000) and spend no more than five years in jail.

Auditor General Deodat Sharma18

The Auditor General said that for the first time, in his 2012 report, he outlined how many recommendations were applied and how many were not. He said that this is a critical area and as such he hopes that it is given the strictest of attention.
For example, part of that report he referred to said that in relation to the 350 recommendations made in the 2011 Report, 245 were in relation to generalized areas, with the exception of overpayments on construction works and related issues, which totaled 105. At the time of reporting in September 2013, 122 or fifty percent (50%) of the 245 recommendations that were in relation to generalized areas were cleared while 11, or five per cent, were partially dealt with.
Sharma insisted that while these irregularities have been highlighted, it is being taken seriously by the relevant ministries, despite what his findings are, and that the relevant ministries are making every effort to correct their systems.
With that being said, the AG then expressed that there were instances where he discovered during audits that his findings would be in stark contrast to the reports of the internal auditors of some ministries.
He had suggested some time in 2003 that measures be taken to strengthen financial management and compliance with his recommendations, hence the establishment of the Internal Audit Division.
The person heading the Department is Chandrawattie Samaroo. The Internal Audit Division, a 14-member “system-corrector” is geared towards bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes by various ministries and budgetary agencies. It monitors and ensures compliance with procedures and laws. When there is room for improvement, the Division makes recommendations for enhancing processes, policies and procedures.