findings & recommendations...# government statutory body financial statements & audit...

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1 | P a g e VANUATU PARLIAMENTARY PUBLIC ACCOUNTS COMMITTEE FINDINGS & RECOMMENDATIONS

findings & recommendations

The findings and the recommendations of the PAC were delivered on 10 April, 2015, during

a press conference that was held at the Pigs Tusk, Parliament House.

Findings and Resolutions of the Hearing conducted on the 1st to the 9th of April 2015

1. Institutions do not comply with the Public Finance and Economic Management

(PFEM) ACT, (17) 1.

2. Authorities supervising the institutions do not know about the PFEM ACT and own

ACTs.

1. Many of these institutions manage to pay their salaries and benefits however failed

to pay the government dividends.

2. Board members do not know how to administer their institutions.

3. There is no accountant hired in some of these institutions, and they have not

recruited professional accountants to do professional duties.

4. The Heads of Institutions do not worry about breaking the law.

5. Money allocated and collected are State Money/ Public Fund – Part 10, subsection

43 (1).

6. The Public Accounts Committee used the Police on several cases to summon people,

however did not prosecute anyone.

Recommendations PAC to ask the Prime Minister and the government to:

1. Relook at the government state owned enterprises – if not paying any dividends

then government must reconsider decisions.

2. Public Service to enforce the law of the Public Service:

a) When recruiting.

b) When they (Public Servants) do not do their jobs.

3. Ask the Public Service to enforce cap 246 (section 33 on allowances) – fees for

official services when Director Generals and Directors are sitting as board members

and receiving allowances.

4. VNPF – re-establish its subsidy companies (Limited Companies): Members Financial

Services Limited (MFSL), Ranch de Bouffa Ltd, VNBR with regards to their reporting

requirements.

5. Government Remuneration Tribunal - check all salary scale across the board.

6. NISCOL – restructure before extending the concessional agreement.

7. Amend the Expenditure Review and Audit Act to enable the PAC and AG to punish to

noncompliance to PFEM Act.

8. Ask VNPF to stop investing for the time being.

9. Ask the government to establish the Public Accounts Office – budget of VT5,

000,000.

10. Increase PAC budget: VT3, 000, 000 x 3 Hearings/year = VT 9, 000, 000.



The List of Government Statutory Bodies (GSB) and the years that they have not

submitted their reports including the re-scheduled deadline for submissions:

# Government Statutory Body Financial Statements & Audit Reports

Deadline 2015

1 Vanuatu National Provident Fund 2013 June

2 Vanuatu National Provident Fund 2014 June

3 Member Financial Services Limited 2013 June

4 Member Financial Services Limited 2014 June

5 Bouffa Ranch Limited 2013 - 2014 June

6 Asset Management Unit 2007 - 2014 June

7 Vanuatu Tourism Office 2011 - 2014 June

8 Vanuatu Broadcasting & Television Corporation

2008 – 2009 / 2013 June

9 Vanuatu National Housing Corporation 1998 - 2014 June

10 Vanuatu Financial Services Commission 2010 - 2014 June

11 Chamber of Commerce & Industries 2013 – 2014 June

12 Vanuatu Institute of Technology 2004 – 2014 June

13 Vanuatu National Training Council 2005 – 2012 June

14 Vanuatu National Training Council 2013 – 2014 June

15 Vanuatu National Cultural Council 2010 – 2014 June

16 Vanuatu National Sports Council 2005 – 2014 June

17 Airports Vanuatu Limited 2012 – 2014 June

18 Vanuatu Livestock Department 2004 – 2013 June

19 Vanuatu Commodities Marketing Board 2001 – 2014 June

20 Vanuatu Institute of Education 2004 - 2014 June

21 Vanuatu Nursing Council 2004 - 2014 June

22 Malvatumauri Council of Chiefs 2005 - 2014 June

23 Terminal Services Limited 2012 – 2014 June

24 NISCOL 2007 - 2014 June

25 Provincial Kava Authority 2013 - 2014 June

Provincial Councils & Municipalities Financial & Audit Reports

Deadline

26 Port Vila Municipality 2005 – 2014 June

27 Luganville Municipality 2005 – 2014 June

28 Lenakel Municipal Council 2009 – 2014 June

29 SANMA Provincial Council 2005 – 2014 June

30 PENAMA Provencal Council 2005 – 2014 June

31 TORBA provincial Council 2005 – 2014 June

32 SHEFA Provincial Council 2005 – 2014 June

33 MALAMPA Provincial Council 2005 – 2014 June

34 TAFEA Provincial Council 2005 – 2014 June


findings & recommendations Government Statutory Body/Bodies…

a) That lack qualified professional accountants:

1. Vanuatu National Housing Corporation

2. Vanuatu National Training Council

3. Vanuatu National Cultural Council

4. Malvatumauri Council of Chiefs

5. Vanuatu Nursing Council

6. Vanuatu Broadcasting & Television Corporation

7. Vanuatu Institute of Technology

8. Vanuatu National Sports Council

9. Airports Vanuatu Limited

10. Air Vanuatu Operations Ltd

11. Vanuatu Livestock Development Ltd

12. Vanuatu Commodities Marketing Board

13. Municipality of Port Vila

14. Municipality of Lenakel

15. Vanuatu Institute of Education

16. Provincial Kava Authority

17. VNBR – Just established

b) That have qualified professional accountants:

1. Vanuatu National Provident Fund

2. Members Financial Services Limited

3. Ranch de la Bouffa Limited

4. Asset Management Unit

5. Vanuatu Tourism Office

6. Vanuatu Financial Services Commission

7. Vanuatu Chamber of Commerce

8. Terminal Services Limited

9. NISCOL

10. Municipality of Luganville

11. SANMA Provincial Council

12. PENAMA Provincial Council

13. MALAMPA Provincial Council

14. SHEFA Provincial Council

15. TAFEA Provincial Council

16. Utilities Regulatory Authority

17. TORBA Provincial Council



Government Statutory Body/Bodies…

c) With no “qualified CEO” or “no proper administration” giving reason for non-

compliance to PFEM Act/own Act/ Companies Act:


2. NISCOL

d) Who have “no knowledge of the PFEM Act” or are not aware of the PFEM Act:

1. Air Vanuatu Operations Ltd








9. Provincial Kava Authority



12. NISCOL








20. VNBR

e) Listed for liquidation on approval by COM or deregistered:


2. Provincial Kava Authority - Deregistered in 2006.

f) Who have faced “problems due to preparation of financial statements by another

accounting firm”, or who have had a “change of auditors therefore difficulty

encountered”:






g) A declaration of 0% was made by the board which resulted in the delay of the

provisions of the financial statement on time to the Auditor General:




h) That reported to their Parent Company instead of to the Auditor General:




i) That reported to the Department of Local Authority instead of to the Auditor

General:










j) That are aware of own Act::













3 4 Government

Statutory

Bodies

71%

are

not aware of

own

Act


k) That are not aware of own Act:








8. Air Vanuatu Operations Limited

9. Provincial Kava Authority – deregistered in 2006



12. NISCOL











23. VNBR


82% not aware of

Expenditure Review & Audit Act




l) That are aware of the Expenditure Review & Audit Act:







m) That are not aware of the Expenditure Review & Audit Act:











11. Air Vanuatu Operations Limited

12. Provincial Kava Authority Ltd



15. NISCOL













28. VNBR


findings & recommendations Out of 34 Government Statutory Bodies…

Figure 1. Percentage of qualified accountants in Government Statutory Bodies:

Figure 2. Percentage of Government Statutory Bodies who are aware of the Expenditure Review & Audit Act:

50%50%

Qualified Accountants

That have no qualified professionalaccountant

That have a qualified professionalaccountant

82%

18%

Expenditure Review & Audit Act

That are not aware of the ExpenditureReview & Audit Act

That are aware of the ExpenditureReview & Audit Act



Out of 34 Government Statutory Bodies…

Figure 3. Percentage of Government Statutory Bodies who are aware of the Public Finance & Economic Management Act:

Figure 4. Percentage of Government Statutory Bodies who are aware of own entity’s Act:

59%

41%

Public Finance & Economic Management Act

That are not aware of the PublicFinance & Economic Management Act

That are aware of the Public Finance &Economic Management Act

29%

71%

Entity Act

That are aware of own Act

That are not aware of own Act


findings & recommendations Other related online materials:

a) The role of the Public Accounts Committee:

https://parliament.gov.vu/index.php/wcs/committee-public-accounts

b) tivnews, 2015, “PAC tightens grip over government statutory bodies”, Public

Accounts Hearing, https://tivnews.wordpress.com/2015/04/02/pac-tightens-grip-

on-government-statutory-bodies-over-financial-audited-reports/

c) tivnews, 2015, “You Have Failed: PAC”, Public Accounts Hearing,

https://tivnews.wordpress.com/2015/04/10/you-have-failed-pac/

d) The Daily Post, 2015, “Auditor General’s Office Under Resourced: AG Path”,

http://www.dailypost.vu/news/article_95153747-33e7-5a4d-9ee7-

3464457c7dcf.html

e) The Daily Post, 2015, “Whole of government report not true worth of government:

AG Path”, http://www.dailypost.vu/news/article_c1fbf8af-271c-59ce-bc2f-

088dffd61c38.html

SUBSCRIBE to :

Your Weekly News by Transparency International Vanuatu…


https://parliament.gov.vu/index.php/wcs/committee-public-accounts

https://tivnews.wordpress.com/2015/04/02/pac-tightens-grip-on-government-statutory-bodies-over-financial-audited-reports/

https://tivnews.wordpress.com/2015/04/02/pac-tightens-grip-on-government-statutory-bodies-over-financial-audited-reports/

https://tivnews.wordpress.com/2015/04/10/you-have-failed-pac/

http://www.dailypost.vu/news/article_95153747-33e7-5a4d-9ee7-3464457c7dcf.html

http://www.dailypost.vu/news/article_95153747-33e7-5a4d-9ee7-3464457c7dcf.html

http://www.dailypost.vu/news/article_c1fbf8af-271c-59ce-bc2f-088dffd61c38.html

http://www.dailypost.vu/news/article_c1fbf8af-271c-59ce-bc2f-088dffd61c38.html


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