4.8 STATE ENTERPRISES RESTRUCTURING AGENCY (SERA) FUND 2014
4.8.1 Governance Issues: Failure to renew contract of employment
The contract of employment of one of the Fund’s employees expired on December 1, 2013. However, 10 months after the expiry of the contract, the contract had not been renewed although the employee was still rendering services and being paid. The Fund may incur unauthorised employment cost if employees are allowed to continue working without signing employment contracts. The Accountant General indicated that the matter has been regularised and all SERA staff has valid employment contracts.
4.8.1.1 The Committee however, questioned the relevance of SERA considering that there was no progress in the reform of Parastatals regardless of its existence. It also raised questions as to whether there was value for money in coming up with such an entity as there were already Boards and Ministries exercising oversight function over Parastatals. The Ministry should therefore fully justify the continued existence of SERA by 31st September, 2016.
5.0 CONCLUSIONS
5.1 As the overall custodian of public funds, the Ministry of Finance and Economic Development has a responsibility to conduct its affairs in accordance with the highest standards of public administration and public accounting. The errors and omissions highlighted in the Audit reports examined by the Public Accounts Committee for the period from 2009 to 2014 constitute a serious breakdown of overall control and management.
Your Committee was however encouraged by the extent to which the senior staff of the Ministry exhibited a determination to get to grips with the situation and to ensure that all the Auditor Generals observations were dealt with before the next Audit.
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