4.7.4 Bank withdrawals unaccounted for
The fund withdrew $1 437 852 from its bank account for disbursements to loan beneficiaries. However, only $1 413 500 was distributed to beneficiaries, leaving $24 352 unaccounted for. The Fund’s financial resources may be used for purposes not in line with its objectives thereby prejudicing potential beneficiaries. The Accountant General indicated that the $24 352 in question was paid towards workshop expenses and travel and subsistence allowances. He pointed out that the funding organisation, UNDP, had preferred to deposit the workshop support funds into the Ministry account and the latter pay the hotel directly. As for the travel and subsistence allowances, Treasury had delayed releasing funds. He indicated that the Ministry had since reimbursed the Fund.
4.7.4.1 The Committee noted with concern that the Fund like other funds in line Ministries, had been prone to abuse, hence there was need for better control and supervision by accounting officers. The Committee recommends that going forward, all those found to violate Fund resources should be penalized in terms of section 91 of the Public Finance Management Act.
4.7.5 Records failing to differentiate debtors falling within one year and those over one year
The Auditor General could not verify the correctness of the debtors’ figures falling due within one year ($949 417) and those falling due after one year ($8 178 028) disclosed in the Fund’s financial statements. The figures could not be traced to the ledger and cashbook submitted for audit. There is risk that the Fund’s resources may not be properly accounted for and this could lead to loss of public resources.
The Accountant General informed the Committee that the Ministry of Finance has engaged the Ministry of Local Government, Public works and National Housing, which currently manages the National Housing Fund and General Civil Services Housing Fund and the supplier of the software which is used. The supplier is agreeable to extend the license to the Ministry of Finance by January 01, 2016. Evidence would be verified in the next audit.
4.7.6 Inadequate security for housing loans disbursed to senior officers
Housing Loan borrowers did not surrender title deeds to the Fund as security for loans disbursed to them since the inception of the Fund in 2006. The Fund may suffer losses should the borrower default in making the loan repayment. The Accountant General informed the Committee that the requirement was not complied with, but they have since directed that this be complied with.
4.7.6.1 The Committee recommends that Ministry of Finance should examine the functions of the Fund from a governance point of view in that the Committee noted that it was inappropriate for the fund to be administered by potential beneficiaries. The Ministry should provide an explanation by 31st September, 2016.
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