Millions overpaid in contracts, severe breach of legislation – AG 2014 Report reveals

In the report, it is stated that the Government for 2014, made over-payments of $237M to contractors for measure works.

This includes an over-payment of $13.5M for works on the construction of two bridges at Baishaidrun and Awarewaunau in region 9. The report stated that “up to the time of reporting, construction works had not commenced even though the contractors were paid since 2014.”

Twenty-two Ministries/departments breached the requirements of the Fiscal Management and accountability act, the report noted. Thirteen of the Ministries breached section 43 which stipulates that any monies that were not spent should be returned to the consolidated fund.

“These Ministries/Departments had not paid over amounts totaling $544M, of which the sum of $135M was related to 280 cheques still on hand; whilst the difference of $409M was held in four bank accounts.”

In addition, eight Ministries breached Section 80 of the Act, which dictates that Ministers present the Auditor General’s report to the Parliament no less than two months after receiving it.

This comes on the heels of revelations that over one billion dollars appear to have been siphoned off from the earnings of the Transport and Harbours Department under the People’s Progressive Party/Civic administration in the years 2003 – 2007.

Public Infrastructure Minister, David Patterson told the House that his predecessor failed to bring the reports to the House in fear of exposing the corruption.