Public bodies’ efficiency now under scrutiny |30 March 2012

The office is training six performance auditors with the help of a consultant and money from the  European Union, and hopes to check at least two organisations this year, under the mandate the office has been given by Section 13 of the Auditor-General’s Act of 2010.

Last year they checked the efficiency of the Seychelles Tourism Board (STB) and “noted some shortcomings” according to auditor general Marc Benstrong, who said similar scrutiny is now being done to the Public Utilities Corporation.

The STB report took six months to compile and has been handed to the National Assembly for perusal and recommendations.

The performance checks are different from financial audits, which verify whether spending records are true, and instead try to find out if the spending should have been made in the first place and if targets are attained.

“We started with the STB because tourism is a key industry for Seychelles and a major pillar of the economy,” he told Nation.
The auditor general says in the report that the five-year-old STB has spent nearly R229 million since 2005 and notes last year tourism arrivals rose by 11% compared with 2010, but adds:

“The STB has been operating without a formal strategic plan or measurable aims since 2005 so its board, parliamentarians and the public will not be able to judge accurately whether expected outputs and outcomes have been achieved.”

Mr Benstrong said the STB has an important role to play in developing tourism and its contribution to the Seychelles economy.
“I am concerned about the STB’s lack of progress in meeting legislative requirements both for the preparation of annual financial accounts and the lack of priority given to tourism inspection and standards,” he said yesterday.

He told Nation though visitor arrivals have gone up, “there is uncertainty about the true impact on visitor numbers through the work of the overseas offices”.

“The STB needs to be more strategic and focused to continue the work achieved so far,” he said.
The report also notes positive trends in tourism saying:

“Although the STB is yet to use more sophisticated means of gauging its performance, there are two key indicators that point to positive outcomes.

“Tourism earnings have increased over the period 2004-10 and in 2010, tourism contributed over 25% of the gross domestic product, and goods and services tax collected from tourism has also increased.”