SOME contents of the 2015 Auditor General’s Report may have inadvertently put the spotlight on the role of the Public Accounts Committee (PAC).
The issue: Can the PAC do anything to investigate the concerns raised especially in relation to the use of Private/Public Partnerships (PPPs)?
Before the question is answered, it is equally important to ask: Why have the contents created such public outcry this time around?
The 2015 Report comes after years of increasing pressure on Barbadian taxpayers in an economy that has not recovered from the international recession of 2008/09. There is growing evidence of a declining quality of life being experienced by Barbadians.
In the midst of the mounting pressure on families, some businesses appear to be enjoying special privileges. Commercial banks are able to offer negligible interest rates on deposits, while not bringing down the rates on loans to match the privilege of fixing their own rates.
From a political perspective, there has been a noticeable shift in momentum in favour of the Opposition in 2016. Apart from the ongoing economic concerns, industrial action and social decay have become more apparent.
In addition, declining international credit ratings have served to confirm that Government has stumbled in its management and leadership of the country.
The resonance of the Auditor General’s Report may be in the expectation that this time around meaningful action can be taken. There is hope that the PAC, with the Audit Office as its investigative arm, is in a position to start the process of delivering the justice. But, can it?
There are nine duties of the PAC, of which the two most critical are: (1) to examine the audited financial statements of (a) authorities of the Government to which the PAC Act 2003 applies and inter-governmental bodies to which it also applies; (b) all statutory corporations, entities in which the Crown owns not less than 50 per cent of the share capital, or controls at least 50 per cent of the voting rights; (2) to examine all reports of the Auditor General, including reports of the results of performance audits.
The most critical requirement of the PAC is to have audited accounts of entities.
Immediately, however, the work of the committee is compromised as the auditor general cites the lack of such audits as the most persistent problem in statutory corporations.
The auditor general can on his own initiative carry out examinations into the financial management of any ministry, department, statutory authority or Government-controlled entity, including how efficiently and effectively they discharge their functions. Unfortunately, he does not have the resources to conduct such examinations. Indeed, he would have to rely on the very Government to provide the resources, which have not been forthcoming for years.
The lack of muscle is very evident in the case of the PPP used in the building of the Barbados Water Authority (BWA) headquarters cited in the 2015 Report.
The contractor received monies for additional costs that exceeded the $5 million advance, which he received. The BWA was asked to indicate if the costs were as a result of requested changes to the project by BWA.
All the decisions of the board of directors related to the project were requested in accordance with the powers of the auditor general. The BWA did not provide any of the requested information.
Given that the PAC has to rely predominantly – in the absence of audited financial statements of the entities – on the auditor general’s report, it is clear where the committee’s work starts. There is a case for the audit office to be funded independently. In fact, the office ought to be paid for services provided.
A few years ago, before he had presided over the affairs of state for a significant period, Prime Minister Freundel Stuart promised further amendments to the PAC Act. In the circumstances, these amendments are unlikely to be forthcoming over the next two years.
Indeed, one awaits the special review of the procurement of the National Housing High Rise Apartment projects, hopefully, including the one at the Grotto, which was not included in the 2015 Report.
The chairman of the PAC, who happens to be the Opposition leader, has already put information concerning the very high cost of building at the Grotto into the public domain.
It is therefore with bated breath that the country looks forward to the findings of the special review.
Albert Brandford is an independent political correspondent. Email: [email protected]
