Robust public auditing institutions needed to tackle fiscal recklessness – Domelevo

The Former Auditor General, Daniel Domelevo, has indicated that strong and active public accountability institutions – Auditor-General, Internal Audit Agency and Public Accounts Committee – will help address fiscal recklessness in public institutions.

According to him, when these institutions are up to their task, they will instill discipline into the public sector and help deal with mismanagement of financial resources.

“So, the Auditor-General, Director-General internal audit, public accounts committee, these institutions we should wake them up. If they are up and doing, let me be honest with you, the Ministry of Finance will repent,” he emphasised

His suggestions came to the fore while commenting on the establishment of an independent fiscal council, a recommendation by IMANI CPE made during the 3rd edition launch of its fiscal recklessness index to curb that bane of the country.

According to Mr. Domelevo, creating a bipartisan committee as suggested by IMANI CPE to deal with fiscal recklessness in the public sector will only burden the public purse; hence, he suggested: “The nation should look at the mandate that currently exists and see whether it cannot be executed by them, which would be cost-beneficial to the country:

Additionally, he mentioned that in ensuring financial discipline into the public institution, the Public Procurement Law must be reviewed – especially with respect to those who constitute the committee.

“The law itself creates problems for public procurement…… Now, if the Attorney General who is supposed to prosecute us is seated over there and he gives an advice allowing a bad procurement request to go through, is he going to prosecute when the time comes?” he asked.

Findings of the 3RD IMANI- OXFAM Fiscal Recklessness Index shows that between (2021–2023) 90 percent of the total financial irregularities were taxes – and with the Ministry of Finance having oversight of the various ministries, departments and agencies, it was ranked the most fiscally reckless institution in the country.

The other ministries making it to the top-five were Food and Agriculture; Communication and Digitalisation; Roads and Highways; and Health, with some demonstrating relatively lower fiscal recklessness.

According to a Senior Research Associate at IMANI CPE, Dennis Asare, the drivers for tax irregularities were weak compliance management, negligence and weak enforcement of sanctions – adding that the “physical recklessness is a reflection of weak institutional effectiveness”.

In his submission, he emphasised that external factors (COVID and Ukraine-Russia) are not responsible for the country’s current economic status; rather, he blamed it on deep-seated recklessness in the management of public finances, lack of real commitment to reform and short-term reforms.