PAC’s latest findings and recommendations a copy and paste job…Goolsarran says Committee not equipped to hold Govt. accountable

Apr 29, 2018 News

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The recommendations and findings contained in the latest report of the Public Accounts Committee (PAC) are nothing new. In fact, they merely represent a repetition; a copy and paste job of what existed in previous PAC reports.
This was recently pointed out by Chartered Accountant and former Auditor General, Anand Goolsarran.
In his recent column, Goolsarran noted that the PAC’s latest documentation looks into the Auditor General’s reports for the years 2012, 2013 and 2014. After its examination of the Auditor General’s reports, the PAC documented its findings and made several recommendations.
Some of its findings include expired drugs donated to regions, accounting officers persistently signing off on incomplete projects, accounting officers not implementing measures to avoid the recurrence of overpayments, lack of adherence to stores regulations and log books not being properly maintained.
Its subsequent recommendations noted that accounting officers should acquaint themselves with the relevant financial laws; that there be continuous training exercises and dishonest officers be removed from the system.
Goolsarran said that these comments are not new and can be traced back to the early 1990s.
He said, “For example, of the 17 issues highlighted (in the PAC report), nine (53%) were a repetition of those contained in the PAC 2010-2011 report; six (35%) in its 2009 report; and eight (47%) in the 2007-2008 report. Who is to blame?”
The Chartered Accountant said, “Given that the PAC is not a full-time body, and considering the above observations, it is evident that the PAC is not equipped to deliver on its mandate to hold the Government accountable for its stewardship and accountability responsibilities.”

Goolsarran stressed that given the aforementioned, the National Assembly should adopt the United Nations model whereby an independent committee of experts meets immediately after the Auditor General issues his report to review the report; conducts hearings involving Heads of Budget Agencies and other concerned officials, and issues its own report to the PAC.
Goolsarran said that this exercise should not take more than one month of full-time effort. He said that the PAC would then carry out its own examination over the next month using the committee of experts’ report as its main frame of reference, after which it issues its report to the National Assembly.
In this way, the Chartered Accountant said that the entire accountability cycle, including the issuing of the Treasury Memorandum, can be completed within 12 months of the close of the fiscal year.
He said that this suggested approach will require a slight amendment to the Standing Orders of the Assembly, which should not be difficult to obtain if one is serious about the economic, efficient and effective use of public resources and assets as well as holding the Government to account for the discharge of its stewardship and accountability responsibilities.
LACK OF COMPREHENSIVENESS
The latest report of the Public Accounts Committee has also been criticized for being a possible product of haste, lack of comprehensiveness or both.
Goolsarran said that following the May 2015 national elections, the membership of the PAC changed, and by convention, the chairmanship is now held by a senior Opposition Member of Parliament. That person is former Housing and Tourism Minister, Irfaan Ali.
Goolsarran reminded that on March 15, 2018, the PAC presented its report to the National Assembly on the results of its examination of the public accounts for the years 2012, 2013 and 2014.
The Chartered Accountant noted, however, that the examination took place over an eight-month period from November 2015 to June 2016 and involved only 12 hearings, an average four sittings per fiscal year.
In contrast, Goolsarran pointed out that the PAC examination of the public accounts for 2010 and 2011 took place over a 27-month from March 2012 to June 2014 at which 50 hearings were held, an average of 25 hearings per fiscal year.
The former Auditor General said that while one might applaud the current PAC for its attempts to bring the examination of the public accounts up-to-date, “We hope that its examination of the 2012-2014 public accounts did not lack the desired level of comprehensiveness, considering that the Chairman was a key Cabinet Minister of the previous Administration, and that the accounts that were examined relate to the stewardship and accountability responsibilities of that Administration.”
Goolsarran noted that the presentation of the PAC report to the National Assembly is the penultimate stage in the public accountability cycle.
That cycle begins with the presentation of the Estimates not later than three months into the fiscal year in question, followed by the execution of the budget; mid-year reporting within 60 days of the end of the mid-year; annual financial reporting within four months of the close of the fiscal year; external review by the Audit Office and reporting to the Legislature within five months of the receipt of the draft financial statements; examination by the PAC and reporting back to the Legislature; and the tabling of the Treasury Memorandum in the Assembly setting out what actions the Government has taken or intends to take in relation to the findings and recommendations of the PAC.
Goolsarran said that while there is no time limit for the PAC examination and reporting back to the Assembly, the Treasury Memorandum is due for presentation to the Assembly within 90 days of the tabling of the PAC report, in accordance with Standing Order 82(3) of the Assembly.
The Chartered Accountant said it is necessary for the public accountability cycle to be completed within one year of the close of the fiscal year to enable the Government to properly discharge its stewardship and accountability responsibilities.
He commented that it will also enable legislators to use the results as an important reference point in their consideration of the national budget for the following year. Goolsarran said that in the private sector, that cycle is usually completed well within six months of the close of the financial year culminating with the convening of the annual general meeting of shareholders.
The Chartered Accountant stressed that timeliness is of the essence, and experience has shown that, in many instances, accountability delayed invariably leads to accountability denied.

 

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