Recent reports from the Audit Office deposited at the National Assembly library reveal concerning financial deficits and budget irregularities at the Quatre-Bornes and Vacoas municipalities, as well as the Flacq district council.
Local authorities across the country are increasingly facing growing financial deficits and concerning budget irregularities.
Reports recently deposited at the National Assembly library shed light on the alarming situation at the Vacoas and Quatre-Bornes municipalities, as well as the Flacq district council.
In the case of the Quatre-Bornes municipality, the Audit Office highlights the inability to determine the amount of unpaid Trade Fees for the 2021-2022 fiscal year, mainly due to outdated data on new registered businesses and those that have ceased operations.
The Trade Fees totaling Rs 3.9 million as of December 31, 2019 were thus carried over to the 2021-22 fiscal year.
The Audit Office also looked into the financial situation of the Quatre-Bornes municipality, revealing a deficit of Rs 114.8 million and a cumulative deficit of Rs 936.9 million as of June 30, 2022.
Regarding the Vacoas municipality, the Audit Office noted a total deficit in the accounts, which doubled in one year, increasing from around Rs 401 million to Rs 804 million.
This is due to higher expenses than revenues, with a deficit of Rs 175 million for the year and an additional debt of Rs 254 million related to employee pensions.
More significant financial irregularities were found within the Flacq district council. Once again, these anomalies involve Trade Fees.
The Audit Office points out that this issue was managed by the business registration department without cross-checking with the council’s records.
As a result, the completeness and accuracy of commercial fee claims amounting to Rs 5,452,875 as of June 30, 2022 could not be guaranteed.
The Audit Office also highlights the amounts owed for commercial transactions, totaling Rs 5,387,633, which were paid during the fiscal year.
However, there were outstanding debts of Rs 4,385,408 dating back to before 2016, which could not be justified due to insufficient evidence, leading to inaccuracies in the accounts.
The Flacq district council’s reserves, valued at Rs 14,788,403, were also examined. According to the Audit Office, these figures were misrecorded, meaning the reserves supposedly accumulated by the council were incorrect.
As for the Trade Fees of Rs 17,622,125 collected by the Flacq district council, they were also reviewed. The Audit Office noted that they were recorded based on payments received, rather than commitments made, contrary to usual accounting practices.
Source: Defi Media
