Rédaction Africa Links 24 with Times News
Published on 2024-04-10 06:38:13
A recent forensic investigation report has uncovered misuse of public funds at the Small and Medium Enterprises Development Institute (Smedi). The report, covering the period from July 2018 to June 2023, was conducted by the National Audit Office (Nao) to delve into the organization’s financial statements, assets, human resources, procurement management, and potential malpractices.
The findings of the report point to several instances where Smedi failed to adhere to proper procurement procedures. One glaring example is the revelation that the chief executive officer served as the chairperson and participant of the Internal Procurement and Disposal Committee (IPDC) from August 2018 to June 2019. During this time, procurements totaling K194,507,126.08 were approved for payment, raising concerns about the transparency and integrity of the procurement processes.
Further discrepancies were noted in the procurement of raw materials for a leather design studio, including the use of a single-source method and informal markets to pay suppliers, which led to wasteful expenditure and the delivery of substandard goods. The report also highlighted significant financial irregularities, such as the purchase of a property without a comprehensive assessment, resulting in additional payments for air conditioners and generators. Additionally, unauthorized expenditures totaling K37,430,789.07 were incurred without the approval of the board, underscoring a lack of oversight and financial management.
The mismanagement of assets was another area of concern identified in the report. The CEO was found to have underpaid for the purchase of a motor vehicle and disposed of a minibus without following proper procedures, leading to unaccounted proceeds. Inadequacies in updating financial statements and discrepancies between the system and audited financial statements further highlighted the organization’s internal control weaknesses.
In response to the report, Smedi chairperson Henry Chete acknowledged the issues within the organization’s financial department and emphasized the board’s commitment to addressing the identified problems. Measures are being taken to rectify the financial mismanagement and ensure compliance with established processes and procedures.
However, concerns remain about the lack of accountability and transparency in public institutions, as noted by Willy Kambwandira, Executive Director of the Centre for Social Accountability and Transparency. Kambwandira expressed disappointment in the recurring challenges highlighted in audit reports and called for swift action to hold individuals accountable for their actions.
In conclusion, the forensic investigation report on Smedi reveals a troubling pattern of financial mismanagement, procurement irregularities, and asset misappropriation. It underscores the need for robust oversight, accountability, and transparency in public institutions to prevent the misuse of public funds and ensure the efficient and effective use of resources for the benefit of all stakeholders.
Read the original article on The Times
