2023-2024 Audit Catastrophe: Report Reveals Failures in Public Financial Management

In a shocking exposé that has shaken public confidence, Dr. Dharamraj Paligadu, the Director of Audit, has unveiled a damning report on government accounts for the 2023-2024 financial year, laying bare systematic failures in fiscal oversight that put taxpayer money at grave risk.

The report exposed a series of significant and ongoing deficiencies that call into question the integrity of fiscal oversight. The findings illustrated staggering budget overruns, persistent delays in project implementation, and inadequate monitoring of public spending practices.

Dr. Paligadu’s introduction raised a critical concern: many of the issues illuminated in this report have been previously raised in past audits, yet no substantive corrective action has been taken.

Among these recurring problems are funded projects that have never materialised, unjustified cost overruns, and poor management of public resources.

The picture painted is one of budget irregularities and stalled initiatives, highlighting severe inefficiencies.

Considering the case of the long-promised upgrade of scientific laboratories in several colleges—this project, with a hefty budget of Rs208.5 million, has faced ongoing delays.

For the 2023-2024 fiscal year, a mere Rs5 million were earmarked, and only the John Kennedy College received an evaluation, leaving numerous other institutions waiting.

The disarray in managing vital drainage infrastructure, essential for flood prevention, further exemplified the lack of planning that prevails within such projects.

Out of the 988 proposed initiatives, only a shocking 5.9% have reached completion, despite a budget allocation of Rs1.2 billion.

This inertia is mirrored in coastal protection efforts, with projects such as that at Bois des Amourettes stalled for over 25 months.

Compounding these issues are alarming discrepancies in public funds allocated to private entities.

A staggering Rs45 million were paid to a company tasked with managing a leisure complex and racecourse in Côte d’Or, all without the requisite documentation being provided.

In a more troubling scenario, the government purchased a diplomatic residence in Washington in 1995 for USD1.43 million, yet its value has plummeted by 30% due to neglect, necessitating the state to incur Rs18 million in rental costs for alternative accommodations.

The report also drew attention to glaring waste within government vehicle fleet management.

Over a span of three years, 92 VIP cars were procured at a cost of Rs209.4 million, with reports of officials receiving multiple vehicles simultaneously, contrary to regulations.

Digital Transformation: A Missed Opportunity

Moreover, Dr. Paligadu’s report criticised the slow advancement of digital transformation within public services—a promise frequently reiterated by the previous government.

Despite considerable investment, numerous management software systems remained vastly underutilised due to insufficient training and compatibility issues across various ministries.

Excessive expenditures on redundant or unsuitable IT services further compound this financial wastage.

The Director emphasised the urgent need for reforms in the digital landscape, calling for enhanced management of expenditures and stricter controls to avoid these initiatives devolving into vast financial sinkholes.

He advocated for greater transparency in public fund management and insisted on the necessity for a robust framework overseeing digital projects.

Public Debt Mismanagement and Insufficient Oversight

This audit laid bare the mismanagement of government debt, revealing that public borrowing has spiralled out of control over the years.

For example, in the 2023-2024 financial year, the government borrowed Rs3.5 billion for road infrastructure, yet only a fraction of Rs1.2 billion was utilised, leaving substantial sums idle for months and accruing unnecessary interest.

Furthermore, debts have been incurred for projects that failed to materialise or were cancelled outright, resulting in significant losses for public finances.

A particularly alarming instance is the abandoned sports centre project in Flacq, which consumed Rs56 million on preliminary studies before being discarded.

The state has also committed over Rs400 million in maintenance contracts for medical equipment across hospitals, yet many devices remain unused due to inadequate staff training, jeopardising the standard of patient care.

Infrastructure in Decline Despite Heavy Investment

One of the most pressing issues uncovered in the report is the rapid degradation of public infrastructure due to a lack of maintenance and proper oversight.

Newly constructed bridges and roads exhibit alarming signs of disrepair, as evidenced by the Rs800 million road connecting Pointe aux Sables to Baie du Tombeau, which is already riddled with cracks necessitating urgent repairs.

Additionally, multiple education infrastructure projects have suffered from poor planning, delaying their launch.

Three new colleges, expected to be operational in 2023, remain unfinished due to a lack of coordination between various ministries, while existing schools are suffering from an acute lack of necessary renovations.

Concerning Waste in Public Equipment Purchases

The report also highlighted problematic purchases and acquisitions that have led to considerable financial losses.

Notable examples included the procurement of security scanners for airports and ministries, costing Rs320 million, with many of these devices sitting unused due to insufficient training for operatives.

Another glaring example of waste is the expenditure of millions on outdated IT equipment; for instance, 200 computers bought for public administration proved incompatible with existing software, rendering them effectively useless.

Unjustified Favours to Private Enterprises

The report brought to light contracts awarded to private companies without clear and transparent tender processes, resulting in inflated costs.

A striking case involving the renovation of the State Trading Corporation (STC) offices, which burdened the government with over Rs110 million, far exceeding an independent estimate of Rs75 million.

Moreover, public funds have been allocated to certain businesses without adequate justification, including Rs42 million given to a company for managing social housing, all without any audit verifying the appropriate use of these funds.

In light of these troubling findings, the report implored the government to undertake immediate and decisive action to reform public financial management, restore diligent budget oversight, and accelerate digital reforms.

Establishing stringent monitoring of public projects alongside enhanced expenditure controls is crucial to ensure a more effective administration and prevent the mistakes of the past from recurring.

For a thorough overview, readers may consult the complete government audit report for the financial year 2023-2024: View complete Report here

Source: Le Mauricien