THE Auditor General’s Report has revealed that the Office of the President in Central Province borrowed from the general deposit account for general administrative activities such as allowances and minister’s tour of districts without authority from the Secretary to the Treasury.

According to the Report of the Auditor General on the accounts of the republic for the financial year ended 31st December 2019, that the borrowed money was also used for procurements of service parts for motor vehicles.

“Contrary to the Appropriation Act No. 22 of 2018, during the period under review, amounts totalling K307,451 were borrowed from the General Deposit Account for general administrative activities such as payment of allowances for investment expo, audits, Minister’s tour of districts, infrastructure verifications, and procurements of service parts for motor vehicles without authority from the Secretary to the Treasury,” read the Report.

The Report disclosed that K1,118,340 was realised from the sale of obsolete assets out of which K381,514 was spent on allowances for several officers who undertook the survey without authority from the Secretary to the Treasury.

“During the period under review, the Secretary to the Treasury authorised Provincial Administration in Central Province to dispose of all unserviceable or obsolete assets valued at a total reserve price of K968,730 through public auction sale as provided in Section 46 sub-section 2I of the Public Finance Management Act No. 1 of 2018. In this regard, a Board of Survey (BOS) Committee was appointed to carry out the exercise. A review of records revealed that K1,118,340 was realised from the sale of obsolete assets out of which K381,514 was spent on allowances for several officers who undertook the survey (K332,753) and other expenses (K48,761),” the report read.

“The following were observed; section (44) Sub-section (4) of the Public Finance Management Act No.1 of 2018 stipulates that all proceeds from disposal of public assets and stores except those that belong to local authorities and statutory corporations should be transmitted to the Consolidated Fund. Out of the net revenue of K1,118,340 realised from the auction of boarded assets, K699,645 was remitted to Control 99 and K37,181 was paid as commission to the auctioneer leaving a balance of K381,514 which was used on payments of allowances and other expenses without authority from the Secretary to the Treasury.”

It revealed that there were delays in banking of revenue collected from BOS totaling K197,450.

“Financial Regulation No. 121 provides that all monies received by any accounting officer should be deposited not later than the next business day following the day of receipt. Contrary to the regulation, there were delays in banking of revenue collected from BOS in amounts totalling K197,450 for periods ranging from 13 to 36days excluding weekends and public holidays,” read the Report.