FPAC holds one-day session with seven government entities |15 July 2023
Members of FPAC
Seven government entities were before the Finance and Public Accounts Committee of the National Assembly yesterday to give clarifications and updates on several points raised in the Auditor General’s report of 2021 with regard to their spending and revenue collections.
Seychelles Electoral Commission
The first entity to face the committee, chaired by Hon. Sebastien Pillay, was the Seychelles Electoral Commission, led by its chairperson Manuella Amesbury, accompanied by Rose-Marie Richard, Finance manager, Verona Joubert, who is the Human Resource and Administration officer and Allain Jean, the logistic officer.
The main query related to the expenditures in electoral stations during the Presidential and Parliamentary elections of 2020, where according to the AG’s report, an expenditure of R18,849,175 was incurred. These were mainly for consumables included cleaning, take away meals, water, and hired vehicles among others.
On October 19, 2020, a sum of R500,000 was shared among the 34 polling stations. After completion of the elections, it was observed that 11 out of the 34 polling stations and the Red Cross society were yet to submit their details of the expenditure. This amounted to SR113,315 including the R9000 worth of fuel coupons issued to the Red Cross Society.
Mrs Amesbury told FPAC that to date only 3 out of the 11 had not yet submitted their details, which amounts to R12,700. The stations were Anse Aux Pins, Au Cap Remand Centre and Anse Royale.
Mrs Amesbury said that Red Cross had informed the commission through a letter that the fuel coupons were destroyed in a water leakage at their office.
“The lessons we have taken out of this exercise were that it was not a job for one person and we needed extra people to help with the running of an election. At the time we had only one person in the finance section. We also noted that our electoral officers also needed training with regard to finance and this is being organised for next year,” said Mrs Amesbury.
The Commission also incurred expenditure of R3,829,434 on use of goods and services during the year 2020, against the budgeted amount of R3,561,259, representing an overspending of 7.5%.
Audit examined the relevant records and documents and observed that the year-end budgetary savings was not returned to the Consolidated Fund and that the Commission had a cumulative total of R6,030,627 at the end of the year 2020 including a brought forward savings of R1,264,779 from the year 2019.
The Electoral Commission informed the meeting that the funds were retained with the approval of the Ministry of Finance for the forthcoming elections.
Departments of Climate Change & Environment
In its one hour session the departments of Climate Change and Environment were questioned about wages and salaries and the staff who had accumulated 42 days leave.
The departments, in reply, stated that most of the staff have taken their leave with the exception of a few. They stated that as of June 2023, only three remained and they had been asked to work on a leave plan.
The questions were clarified by principal secretary for the Environment department, Denis Matatiken, and principal secretary for the Climate Change department, Tony Imaduwa. They were accompanied by Sabrina Belle, the director for Administration and Human Resource and accountant Marie-Claude Labonte.
There was also questions with regard to the receipt books used for the sale of animals, plants, publications, materials as well as fees and fines for land, road and environment, which were not physically sighted.
PS Matatiken had proof of the copies of receipt vouchers although they could still not produce the receipt books.
Industrial Estates Authority
The Industrial Estates Authority had to provide clarification on the status of the cashier’s module, which according to the auditor’s report was not being used effectively. For the period under review, IEA collected R5,712,486 from rent of SME's buildings/workshops and R15,792,739 for its long-term leased land and buildings.
The Authority used the Cashiers' Module for issuing invoices for each individual debtors and issuing receipts upon payment thus automatically updating the relevant records. However according to the report this was not being used effectively leading to discrepancies such as duplication of invoices and invoices raised on the wrong client as well as some bank transfers not matching invoices.
Audit revealed that although the cashier's module was in use, the Authority was maintaining the debtors' records in a spreadsheet whereby a statement of account for each debtor was maintained and up-dated manually. This excel spreadsheet is also used to update the aged debtor listing.
The chief executive, Roy Collie, explained they had to use the excel spreadsheet as things were not in order.
“In 2021 I took the decision to stop using the Cashier’s module and to start from scratch and build up the clients’ data including use debtors list, invoice register and their statement. It was tough since we had over 800 clients,” said Mr Collie.
FPAC also questioned the Procurement of the Property Management Software where a contract agreement was signed with one supplier in December 2021 to develop a property management software (PMS) to administer leases and debt management in their entirety for a consideration of R240,000 excluding VAT.
The report stated that the scrutiny of the contract agreement, relevant records and documents revealed there was no documented need assessment with details of the requirements, the Public Procurement Regulations (PPR)132 conditions for advance payments were not followed, and the software did not go live on the scheduled date. Additionally, there were no provisions for penalty for delays or breach of contract, indicating a need for legal vetting.
The Authority informed FPAC that many consultations were made with related parties, such as, Ministry of Finance, DICT, Minister of MIEI, cabinet of ministers and Procurement department to seek ways to improve the IEA revenue system.
IEA received the approval of all related parties to purchase the property management software and Mr Collie informed that the main source of the delay was from the DICT which was trying to integrate the cashier module invoice component in the PMS, and it informed IEA, 8 months after being given the task, that it could not implement it.
Mayor’s Office
The Office of the Mayor led by former mayor, David Andre, and administrative assistance, Solange Marimba, had to clarify the amount collected to date on the sale of a commemorative book to celebrate 240 year anniversary of Victoria.
The book was printed in 2018 in London at a cost of GBP 9,256 which was met by the Ministry of Finance, National Planning and Trade. The price of a copy of the book was fixed at R500, and for its sale a number of outlets were identified. Some copies of the book were also given to domestic and overseas delegates free of cost in the form of gifts. Audit observed that the proceeds from sale of the book were not realised. By the end of 2021, a total of 466 copies had been distributed to sales outlets with a potential revenue of R233,000 and 375 copies were issued free of cost as gifts leaving the balance of 159 copies in the Office. However, the amount of sales collection was R108,000, against the expected R233,000, leaving an outstanding balance of R125,000 yet to be collected from the concerned sales outlets.
It also questioned an invoice raised on February 14, 2019, for R100,000 to the Seychelles Islands Foundation for the issue of 200 copies of the book. However, the invoice still remained outstanding at the time of the audit.
The Mayor’s Office had clarified in their reply, in October last year, that the write- off approval from Ministry of Finance was received for R100,000 in July 2022.
With regard to the revenues collected, Mr Andre informed FPAC that in 2022, the Mayor’s office collected R20,500 from the two sale outlets, Antigone Boutique and Museum shop.
Seychelles Bureau of Standards
For their part the Seychelles Bureau of Standards, SBS was questioned on their income where the Bureau which collects income from various services delivered at the Main Office and the Fish Inspection and Quality Control Unit (FIQCU), had not performed monthly reconciliation between the Quickbook and the ledger during the year under review, resulting in differences between the two.
The daily collection at the year-end was not deposited to the bank promptly, accumulated debtors stood at R1,424,226 as at December 31, 2020, of which R542,331 (38%), was outstanding for periods exceeding 90 days from issue of the invoice. AG’s report also observed that at times, the revenue vouchers were not supported by the relevant receipts issued.
The chief executive of SBS, Andy Ally, who was accompanied by accountant Josiane Samson and Daniella Porice, the director for Human Resource and Administration, explained that many debtors have already settled their payment, leaving the current debt at R997,280.
Seychelles Heritage Foundation
The executive director of the Seychelles Heritage Foundation, Benjamine Rose, was questioned on the leave pay owed to two (2) former personnel upon their resignation. Applying the criteria stipulated in the Procedures Manual to the Public Service Order (PSO), revealed a total overpayment of R3,139.
Ms Rose informed FPAC that they wrote to the two former staff in May 2022, to advise them to do the necessary and they were also contacted by phone, but to date they have not refunded the amount. “But we will continue to pursue this and reach out to them but there are proof that we have initiated contact,” she said.
On the issue of non-financial assets, the report wrote that the foundation incurred an expenditure totalling R63,830 on procurement of non-financial assets during the year 2020. Audit examined a sample of five (5) payments and observed that the Fixed Asset register was not updated with eleven (11) assets purchased during the year 2020.
In her response, Ms Rose said the 11 assets are now updated and had a document to prove it.
Seychelles Maritime Safety Authority
The last entity before FPAC yesterday was the Seychelles Maritime Safety Authority (SMSA) led by its chief executive, Captain Joachim Valmont, who was accompanied by the director Technical, Richard Ernesta, the acting senior legal officer Wilnette Joseph, the accountant Samia Delorie and the Human Resource officer, Doran Henry.
The main point raised by the FPAC based on the AG’s report was the unrealistic budget estimates, where audit said analysis of the revenue collection indicated that the collection of fees was significantly low when compared with the figure budgeted in respect of all the years under review (2019, 2020 and 2021).
The trend of revenue collection was erratic as actual receipts constituted only 68%, 24% and 41% percent of the budget estimates provided for 2021, 2020 and 2019 respectively.
In its reply SMSA had stated that the over-budgeting was due to anticipation in the revision of fees that was under drafting as well as the licencing of hire craft still under the Seychelles Licensing Authority.
Yesterday Captain Valmont informed the committee that the fees regulation was enacted in February 2023 and SMSA has since collected R5.29 million. He said this was against a projection of R2.67 million.
“We expected the law to be enacted later but since it came into force earlier then we have started collected the revenue earlier,” explained Captain Valmont, adding the fees stated in the law were also higher than the previous amount.
For the whole year 2023 SMSA had projected a collection of R4.4 million and the entity is already ahead of its projected amount at the end of the first quarter of the year.
“The fees regulation coming into force at the time we were also having the issuance of licenses, are the reasons why the sum is higher than what was projected,” he added. Miss Delorie further explained the licenses estimated by the Ministry of Finance, National Planning and Trade was R1 million, and the collection so far is R2.3 million.
Patsy Canaya
