National Assembly Standing Order No. 16 mandates the Public Accounts Committee to examine the sums granted by Parliament to meet public expenditure and such other accounts laid before the National Assembly.
It is therefore, the duty of the Public Accounts Committee to report whether such public funds have been managed and expended as authorised by Parliament. In this context, the Committee examined the audited Appropriation and Fund Accounts for the Ministry of Industry and Commerce as reported by the Auditor General in her Annual Report for the financial years ended December, 31, 2014 and 2015.
3.0 METHODOLOGY
The Committee held an oral evidence session with Mrs Shonhiwa, the Permanent Secretary and Accounting Officer for Ministry of Industry and Commerce. It requested written evidence which was then analysed and further this basis of the Report.
4.0 FINDIN`GS AND OBSERVATIONS BY THE COMMITTEE
4.1 APPROPRIATION ACCOUNTS FOR THE MINISTRY OF INDUSTRY AND COMMERCE FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2015
4.1.1 Direct Payments made by Treasury on behalf of Ministry (2014)
During the year 2014, Treasury made direct payments totaling $196 193 to service providers on behalf of the Ministry. In 2013, the figure for direct payments stood at $955 973. The Ministry was advised by Treasury to obtain receipts from the respective service providers confirming payments made. The Audit found out that the Ministry did not have receipts supporting the payments and there were no reconciliations showing the invoices paid and the actual amount owed to each service provider. There was also a variance of $32 538 between the figure provided by Treasury and the figure shown on the Public Finance Management System (PFMS).
In the absence of reconciliations and confirmations of payments made to service providers, it will be difficult to establish whether payments were made against existing debts and also monitor the Ministry’s obligations to service providers.
The Ministry acknowledged the audit observation and informed the Committee that corrective action had since been taken. The missing receipts were reported to have been with Treasury at the time of audit. The Ministry also highlighted that TelOne took time to submit confirmations for payments, hence the delay in carrying out reconciliations. The Ministry submitted all the supporting documentation for the direct payments and the observation has since been addressed. Going forward, the Ministry indicated that there is now in place a register for commitments to all service providers. The observation was therefore addressed to the Committee’s satisfaction.
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