Tyrone Reid, Enterprise Reporter

STRACHAN

A frustrated Auditor General Adrian Strachan has lashed the Dr. Omar Davies-led Ministry of Finance and Planning for the role it has played in facilitating and perpetuating the perennial breaching of government guidelines.

A stern Strachan said the Finance and Planning Ministry must decide whether it will properly police public spending, or continue to be party to public entities side-stepping proper procedures, which has resulted in millions of dollars worth of unauthorised expenditure and an imbedded culture of breaches.

Part of the problem

"We are saying that the Ministry of Finance should decide if they are a part of the problem or the solution," Strachan said in an exclusive interview with The Gleaner.

"The law requires prior approval from the Finance and Planning Ministry, but oftentimes, public entities disregard that requirement and then the ministry turns around and grant them retroactive approval," he added.

When contacted, the Ministry of Finance denied granting retroactive approval to public entities.

"This ministry does not give retroactive approval for breaches of the applicable laws. Where recoveries can be effected, this is implemented. Where the accountable officer of the entity is in breach of the law and the guidelines, and the loss is irrecoverable, then the sanctions of the PBMA (Public Bodies Management and Accountability) Act will be implemented," read a statement from the ministry.

The ministry also said it is yet to use the provisions under the PBMA Act because all monies inappropriately used have been fully recovered.

Additionally, the ministry argued that in cases of unauthorised expenditure that fall under the Financial Audit and Administration (FAA) Act and where there is loss to the Government of Jamaica, "surcharge proceedings are and can only be recommended by the Auditor General for full recovery, or where irrecoverable, then a fine is imposed by the Financial Secretary".

"In all cases of recommendation for surcharge by the Auditor General, there is 100 per cent implementation by this Ministry," the response boasted.

However, no response was forthcoming from the Ministry on whether it believes the frequent and ostensibly flagrant violations of expenditure protocols was a cause for concern.

Still, Mr. Strachan told The Gleaner that his administration is discouraged by the consistent failure on the part of the government to clean up its own house. "I am frustrated with the apparent knocking of my head on the wall and my staff is also frustrated because year after year they spend time researching these things and coming up with breaches and then nothing happens to correct them," he emphasised.

In his latest report, Mr. Strachan red flagged a string of expenditures as improper payments and overpayments, which stood at a combined $70.5million. That figure does not include what the Auditor General labelled as losses, irregularities and unverified transactions.

"The audits at several entities disclosed instances in which vouchers and supporting invoices were not presented for expenditure totalling $18.3 million. I was therefore unable to verify their authenticity," the report stated. It continued: "Information was not made available as to how assets and other resources valued at $1.8 million were accounted for. Nine entities also reported losses and irregularities involving $13 million. Most of these cases of losses and irregularities were reported to the police."