Dear Editor,

The Public Sector Modernisation Programme (PSMP) started in 1988 under the name of the Government Administrative Reform Programme, funded by the World Bank, and has gone through numerous phases since then. After reading the 2011/12 Auditor General’s Report, I asked the simple question, has the PSMP vision died?

Why do I ask this question? I quote the following from the report (pages 107-108):

8.2.126 The audit of the accounting records and financial transactions of the ministry revealed systemic weaknesses in the controls governing the management of its resources. Consequently, we found unsatisfactory conditions such as: arrears in the reconciliation of bank accounts; payment and procurement breaches; delays in lodgements; inadequate control over fixed assets and advances. The ministry was urged to strengthen the internal controls to safeguard their assets and ensure strict compliance with the Government’s guidelines.

Internal Control Weaknesses

8.2.127 Weaknesses were observed in the controls governing blank cheques and fixed assets. We found that 9,000 cheques were not included on the cheque register, and fixed assets totalling $853,474 were not recorded on the ministry’s inventory records. Further, 58 items of electronic equipment were not presented for audit inspection, despite requests. We recommended that the ministry comply with the relevant government guidelines and present the equipment for inspection. Management has since taken corrective action to strengthen the control weaknesses identified.

Procurement Breaches

8.2.128 A contract to install an electronic security system at a value of $6 million did not include a completion date and a defects liability clause. We recommended that the ministry ensure compliance with Government procurement guidelines and related regulations.

8.2.129 The ministry failed to report to the Office of the Contractor General (OCG) the award of 10 contracts totalling $29.7 million, in breach of the Contractor General Act. Two contracts with variations exceeding 50 per cent of the original contract sum were not reported to the National Contracts Commission. The Ministry indicated that the relevant reports were subsequently submitted to the OCG.

8.2.130 Contrary to the Ministry of Finance’s payment procedures, the ministry made payments totalling $653,944 from its Deposit and Capital B accounts to meet its recurrent expenses. The ministry has since advised that these types of payments will not recur.

Compliance Audits

8.2.131 We found no evidence to indicate that the ministry was actively pursuing the clearing of outstanding balances for 1,250 accounts totalling $114.7 million as at December 2011. Included in the amount were credit balances totalling $3.3 million. Management’s failure to monitor the advance accounts may result in the understatement of expenditure. Management was advised to institute an appropriate system to ensure the timely clearing of advances and regularise the credit balances. The ministry has indicated that more than 70 per cent of the advances have been cleared and that efforts are being made to ensure full clearance by March 31, 2013.

All the above should not be happening, based on what the Public Sector Modernisation Programme has gone through. Further, in terms of good governance, the cabinet secretary needs to revamp the role of permanent secretary as it would appear the people occupying those posts are not fulfilling their roles.

Ambassador Douglas Saunders needs to give an update.

Dr Charles Demontaque

Stafford University

101 Weybrige Road

Addlestone Road, Surrey

United Kingdom

charlesdemontaque@yahoo.co.uk