The Committee noted with concern the challenge in the Ministry of maintaining up to date records. Reconciliations should be carried out on a monthly basis and any variances observed should be investigated at the material time. There is really a serious performance challenge and lack of supervision in the Ministry. The Permanent Secretary indeed admitted before the Committee that there was a casual approach by his officers in dealing with these matters.
4.3.1.1 The Committee recommends that the Ministry should, by 31stAugust, 2017, submit invoices and vouchers supporting the $1 437 580 direct payments made by ZINARA in 2013.
4.3.1.2 The Ministry should as a matter of urgency finalise reconciliations for the 2014 ZINARA disbursements and submit credible evidence explaining the variations of $2 201 660 by 31st August 2017.
4.3.2 Irregular payment of bonuses to casual workers
In 2013, the Audit observed that for four years in succession, the Fund paid bonuses to casual workers violating Section C, part 3 of the contract signed between the Fund and the workers which stipulated that no bonuses should be paid. In addition, there was no authority from the Civil Service Commission to support payment of bonuses amounting to $97 630. This was a clear improper charge against public funds which may result in budget overrun.
The Permanent Secretary conceded that it was wrong for the Fund to pay bonuses to casual workers. He added that the Director in charge of the Fund thought that the Fund was autonomous and he could run it as he wishes. The Ministry stopped payment of bonuses after the matter was raised with auditors.
The Committee was perplexed to note that there was a circular from the CSC which clearly stipulates that casual workers were not entitled to bonus and the Director in charge of the Fund went on to pay such bonuses in disregard of the Circular. The Ministry took no action against the Director, yet this reflected on the performance of the Director.
4.3.2.1 The Committee recommends that the CSC should by 31stAugust 2017, issue a cautionary letter against the Director of the Fund for failing to observe policies and procedures in dealing with public funds.
4.3.3 Procurement of a binder material worth $320 000 without following Tender procedures in 2014
Statutory Instrument 161 of 2008 – Procurement (amended) Regulation Number 16 stipulates that purchases of at least $300 000 should be done through a formal tender. During 2014, the Audit observed that the Fund purchased a binder material called eco-roads soil stabilizer meant to strengthen dust roads at a cost of $320 000 from a private company without flouting formal tender.
The Permanent Secretary indicated that since the material was purchased for research purposes, the Department of Roads did not think that it was necessary to proceed by way of a formal tender. However, the Committee noted with concern that the Statutory Instruments had no such exclusions for procurement for purposes of research. The Permanent Secretary conceded that the action was wrong and he indeed apologised for a clear disregard of laid down policies and procedures.
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