Possible Causes of the Auditor General’s Frustration:

• Failure to Exercise Disallowance and Surcharge Powers:
  • The Constitution grants the Auditor General the power of disallowance and surcharge, which have not been effectively exercised. As a result, individuals who misappropriate funds are not held accountable, leading to recurring financial irregularities.
• Ineffectiveness of the Public Accounts Committee (PAC):
  • The PAC is responsible for ensuring the implementation of the Auditor General’s recommendations. However, after public hearings, there is often no concrete action taken to ensure that offenders make restitution, weakening the impact of the Auditor General’s findings.
• Inefficiency of Audit Report Implementation Committees (ARICs):
  • ARICs are mandated to enforce the implementation of audit recommendations. However, these committees are often dominated by internal members who are reluctant to enforce recommendations that may implicate them, resulting in a lack of accountability and continued financial mismanagement.
• Lack of Linkage with Law Enforcement Agencies:
  • There is no established process for referring the Auditor General’s findings to law enforcement agencies for investigation and prosecution. This gap allows those responsible for financial irregularities to evade consequences, perpetuating the misuse of public funds.

(4 points @ 2.5 marks each = 10 marks)

Recommended Solutions:

• Exercise of Disallowance and Surcharge Powers:
  • The Auditor General should actively exercise the powers of disallowance and surcharge to ensure that individuals responsible for financial irregularities are held accountable and required to refund misused funds.
• Strengthening the Public Accounts Committee:
  • The PAC should be empowered to take more decisive actions following their hearings, including enforcing restitution and holding public officials accountable for implementing the Auditor General’s recommendations.
• Reforming ARICs:
  • The composition of ARICs should be revised to include more independent external members who can enforce the implementation of audit recommendations without bias or reluctance.
• Establishing a Referral Process to Law Enforcement:
  • There should be a formal process for referring cases of financial irregularities identified by the Auditor General to law enforcement agencies, such as the police or EOCO, for further investigation and prosecution.