Administrative Tribunal: Audits reveal failures in extractive industry control and other areas – Notícias

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Administrative Tribunal: Audits reveal failures in extractive industry control and other areas – Notícias

2:16 CAT | 24 Jul 2018

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The Judicial Council’s Administrative Tribunal says it considers that failure to conduct regular audits of extractive industry companies has led to a lack of knowledge of the actual costs of companies’ activities and other operating expenses.

During the 7th Ordinary Session of the Judicial Council in Maputo last week, the Administrative Tribunal emphasised that the National Petroleum Institute (INP) had not exercised control over costs designated as “pre-development” costs, which are included in the expenditure and revenues submitted by the concessionaires. Likewise, quarterly cost recovery reports related to the extractive industry had not been submitted to the INP.

These are findings of three Administrative Court extractive industry audits carried out in 2017.

Within the framework of its Annual Activity Plan, the Administrative Tribunal carried out a total of 329 audits in the year just past, 103 of which were carried out by the State General Account Department and 226 by the Accounting and Auditing Department.

Other findings and irregularities

Regarding the Results-Driven Public Finance Project, the Administrative Tribunal found lack of documentary evidence of expenditure; misapplication of funds; execution of contracts without the approval of the Administrative Tribunal; and contracts not recorded by the body.

In the field of public works, the tribunal found a lack of records of amounts paid in the works; indications of contracting works whose values surpass costs in the international market; and execution of works that do not meet quality standards.

The 7th session of the Judicial Council brought together all the courts of administrative jurisdiction, including the Higher Administrative Court, customs courts, tax courts and provincial administrative courts.

Source: Notícias