Fijileaks
  • Home
  • Archive Home
  • In-depth Analysis
    • BOI Report into George Speight and others beatings
  • Documents
  • Opinion
  • CRC Submissions
  • Features
  • Archive

Dr Neelesh Gounder: Auditor-General Ajay Nand should stand alone

9/9/2017

4 Comments

 
Picture

"The unprecedented accusation by the PAC chairman that media organisations are sensationalising the audit reports (The Fiji Times 27/07) is unwarranted and unjustified. In fact, it is in the interest of PAC, which is a parliamentary committee, to have the media cover what is reported in the audit report. This will create more interest and understanding of the issues of accountability and transparency by the citizens of the country. It is therefore astonishing to hear that the PAC tends to believe that audit findings which grab media attention are negative. One also needs to question how the PAC defines the concept of "sensationalising" when it comes to media reporting of audit reports."

By Neelesh Gounder

THE role of the Auditor-General is to support Parliament by holding the Government to account for how it spends public money. Alongside the parliamentary Public Accounts Committee (PAC), office of the Auditor-General (OAG) plays an important role in Commonwealth countries and Westminster style democracies.


Both these institutions scrutinise and oversee how Government uses public sector resources and are thus essential institutions in economic governance. Through timely audit reports, accountability and transparency of the financial activities of the Government are assured.

The audit reports prepared by the OAG and scrutinised by the PAC keep the citizens informed of the financial activities of the Government. Auditing reports, timely dissemination and public scrutiny of it is therefore regarded as a cornerstone of good governance.

The audit findings and recommendations aim to promote integrity and accountability in the financial management affairs of Government. Apart from public consumption, the audit reports are also used by the Government to improve its systems and processes to ensure proper and effective use of public funds.

At least once every year, the Auditor-General is required to report to Parliament on the results of audits. Audit reports are also made available to the public and are published on the website of the OAG.

After audit reports are presented to Parliament, the PAC will examine all reports of the Auditor-General tabled in Parliament and report back to Parliament regarding any issues or matters in audit reports the PAC believes should be drawn to the attention of Parliament.

In order to perform the functions required under the Constitution, the Auditor-General must exhibit a high level of integrity and accountability so its independence is not compromised. The 2013 Constitution clearly states this "… the Auditor-General shall be independent and shall not be subject to the direction or control of any person or authority, except by a court of law or as prescribed by written law".

Two recent events in Fiji, both related to audit reports, raise some important questions on the notion of independence and effective functioning of the two institutional oversight arrangements of OAG and PAC.

Firstly, the unprecedented accusation by the PAC chairman that media organisations are sensationalising the audit reports (The Fiji Times 27/07) is unwarranted and unjustified. In fact, it is in the interest of PAC, which is a parliamentary committee, to have the media cover what is reported in the audit report. This will create more interest and understanding of the issues of accountability and transparency by the citizens of the country.

It is therefore astonishing to hear that the PAC tends to believe that audit findings which grab media attention are negative. One also needs to question how the PAC defines the concept of "sensationalising" when it comes to media reporting of audit reports.

If we were to agree that the media was sensationalising the audit reports, does this mean that the PAC argues that there should be a code of conduct for reporting audit reports? Why does PAC believe the benefits of sensationalising are less than the cost of sensationalising?

Indeed sensationalising audit reports can have both benefits and costs. It is possible to argue, in same breath that PAC criticises the media, that "sensationalizing" audit reporting may keep the public informed and involved.
Secondly, the recent press conference where the Auditor-General appears alongside the permanent secretary and a senior civil servant from the Ministry of Economy to tell the media and public that there are "a number of errors in the 2016 report that need to be corrected and clarified".

This in itself is a problem. Why was there a need for them to appear with him at the press conference?

If indeed there were "errors" in the report, the proper thing for the OAG and the Ministry of Economy to do would have been to raise those with the PAC and correct it there.

The audit report in general terms is an opinion and is not entirely an issue of errors and mistakes. That is the matter for PAC to scrutinise.

This is why PAC has the powers of the High Court where it can call for witnesses and summon persons to appear before it. Once it has done all these, the report is then submitted to Parliament. Parliament then debates that report and every member of the Parliament, including ministers, have the right and opportunity to speak on it.

A press conference with those whom you are supposed to audit raises questions about the independence and integrity of the OAG. The OAG is an independent constitutional officer and serves Parliament not the civil service.

Decisions and behaviour in practice of public officials such as OAG are observed, directly or indirectly through the media, by the citizens. These can be used to reach an assessment of actual independence. The actual notion of independence and integrity are not only dejure arrangements (what is in the Constitution) but defacto (behaviour and norms) as well.

The decision by the OAG and Ministry of Economy to appear together in a press conference to correct errors in the A-G reports sets dangerous precedents. It has created a perception that there is interference in the work of the OAG and has the potential to undermine the work of the PAC. The OAG should not present a supplementary report to correct the errors. Instead it should appear before the PAC and correct it there.

With these issues, Parliament might have to investigate the various pieces of legislation that deal with the audit process from beginning to end until the PAC presents its report to Parliament. Source: The Fiji Times

4 Comments
Rajend Naidu
9/9/2017 09:05:07 pm

Editor,
Independent State Institution.
An independent institution of State in a democracy must be seen to be operating independently. It's integrity and credibility is depended on its capacity to do that.
That capacity in turn is dependent on having office holders who are not tainted politically or in any other manner.
The Supreme Court in Kenya has ordered a re- run of the presidential elections because it determined that the Electoral Commission had not conducted the elections fairly and properly, consistent with the requirements of their role under the constitution.
Now the opposition leader Raila Odinga has said he will not re-run unless some officials of the Electoral Commission resign ( DW News 10/09 ).
They do not trust these tainted officials to do the right thing.
I am pretty sure the Kenya case has some valuable lessons for us as we head to our next post coup election.
Sincerely,
Rajend Naidu

Reply
Chiku
9/9/2017 09:33:16 pm

It's close to 5 decades since Fiji became an independent nation state with a Westminister style democracy. After 4 coups we are told Fiji has for the first time become a " true " democracy. It is therefore perplexing that it requires a university academic to still spell out the role of the OAG. Is the role of the OAG being distorted - subverted - in the purported " true " democracy in post coup Fiji thus requiring Dr Gounder to explain and clarify the role and its broader implications for holding power to account in a democracy?
So just what kind of " independent " office does the Auditor -General have if he is under the political sway of a government super-minister?
Infact just what kind of democracy does Fiji have under the coup maker Bainimarama and his right hand man, the super-minister Khaiyum?

Reply
Chiku
10/9/2017 08:50:38 pm

The Auditor-General and the three officials sitting in a row are no pretty maids sitting in a row, are they? They look to me like people in pain wishing they were somewhere else. Who got them lined up that way before the press? And, to what end?

Reply
Tomasi
11/9/2017 05:31:19 am

As usual, excellent observations indeed, Chiku. Very true and profound questions for all to digest and act upon. Vinaka.

Reply

Your comment will be posted after it is approved.


Leave a Reply.

    Contact Email
    ​[email protected]
    Picture
    Picture
    Picture

    Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    December 2018
    November 2018
    October 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    October 2012
    September 2012