The Auditor General and Good Governance
With the recently published Auditor General’s report, Integrity Group Barbados thought it necessary to examine the role of the Auditor General, and other relevant legislation that promote good governance. The Office of the Auditor General is a key feature in Barbados’ national integrity system. One of its main objectives is to strengthen accountability by providing independent reports of government departments after the examination of their accounting records. These reports seek to highlight inadequacies in the public sector’s governance practices and make recommendations to address them. The Auditor General’s office therefore acts as a guardian to, and promoter of the public interest regarding the management of taxpayer’s money.
Negligence in government spending
Several reports of the Auditor General have highlighted numerous instances of negligence in the spending, management and recovery of taxpayer dollars. Over the years, instances of cost overruns and the failure to recover loans and outstanding taxes owed to government have been raised. In addition, the Auditor General has regularly voiced his disapproval of the failures of government departments to adhere to accounting and reporting requirements, and noncompliance with stipulated protocols during tendering processes.
Despite several recommendations by the Auditor General to correct these substandard practices, they have continued without consequences. Yet, multiple regulations that govern the conduct and management of government business are expressed within the law. The Financial Administration and Audit Act contains many of the checks and balances, administrative practices, principles and rules, that seek to promote financial discipline and management in government departments. The accounting procedures, reporting requirements, management of expenditure, roles of various officers, and matters of accountability are all captured within this act.
The act also addresses matters pertaining to government’s tendering processes where it states that when expenditure in the supply of services or supplies exceeds $200 000, the authorised officer should tender these services. Additionally, that officer ought to make tenders public through publications in the local newspapers.
Laws are ignored
Irrespective of these requirements, the Auditor General’s reports have indicated several infractions. Yet, according to the act, such infractions are to be followed by disciplinary charges that include suspension and dismissal in accordance with the Public Service Act, for public officers who contravene Financial Administration and Audit Act rules. Therefore, the failure to adhere to rules and the negligence that follows are a consequence of the lack of enforcement of existing laws. Furthermore, glaring inadequacies within the legislation also contribute to the poor management of public funds. The act allows contract bidders to bypass the recommended tendering process and directly negotiate with cabinet at the instructions of ministers. This provision can undermine the checks and balances that promote transparency, fairness and good governance that prevent a number of the issues raised by the Auditor General.
Amend and enforce the law
Therefore, since many of the necessary rules and regulations are already provided within the Financial Administration and Audit Act, we ought to ensure that there is compliance with this law. Additionally, amendments to the act that remove provisions such as ministerial discretion that weaken good governance initiatives ought to be encouraged. In the interest of improving good governance, amendments that can enhance the enforcement powers regarding disciplinary matters should be pursued. This is where a closer legal arrangement between the Financial Administration and Audit Act and the Auditor General can be instituted to grant him disciplinary and enforcement powers. Finally, there must be greater financial independence granted to the Office of the Auditor General for it to effectively undertake its duties.
Given that the Auditor General’s report is largely retrospective in its nature, proactively preventing infractions and irregularities from occurring could alleviate many of the concerns raised in the report. To achieve this, there must be commitments to improve the disciplinary and enforcement aspects of existing legislation along with closing loopholes.