No resolution in $2.6B revenue impasse with Auditor GeneralImbert: She’s only added fuel to fire
Senior Political Reporter
There is no resolution with Auditor General Jaiwantie Ramdass on the controversial $2.6 billion 2023 revenue discrepancy impasse.
The Auditor General’s Special Report on T&T’s public accounts for 2023 only adds “fuel to the fire,” creates more unnecessary public confusion and does not satisfactorily address the core issue, which, in Government’s view, has been comprehensively cleared up.
Finance Minister Colm Imbert noted this regarding Ramdass’ Special Report on the Public Accounts for the Financial Year 2023 in a statement to Parliament yesterday, after presenting the Special Report.
The report involved the core issue of the $2.6B discrepancy which arose with the Auditor General’s original report on the 2023 Accounts. The Auditor General and Finance Ministry clashed in April over the understatement of the $2.6B in revenue in the Auditor General’s original 2023 report.
The deadline to submit information to the Auditor General was January 31, 2024. Due to issues with Central Bank’s new electronic cheque clearing system, however, Finance divisions discovered the $2.6B in February. But attempts to have Ramdass include the figure in her 2023 report failed. When her report was sent to Parliament —minus the sum—Imbert refused to present it. Government then changed the law to extend the period for submission of information to the Auditor General and for submission of the report.
The issue caused tensions on both sides, with the ministry launching a probe of the situation and Ramdass taking legal action on other aspects.
Yesterday, Imbert said, “Following the public statements made by the Auditor General with respect to her original report on the 2023 accounts, her baseless assertion that the Ministry of Finance sought to unethically backdate the original 2023 accounts has been completely refuted.”
However, he added, “This Special Report does not assist in any way in clearing up the main issue in contention, which resulted from an overstatement of tax refunds, and a subsequent underreporting of net revenue, leading to a $2.6 billion discrepancy in the revenue figures for 2023.
“The main point of this Special Report, the expected scope of which was clearly outlined in a letter written by the Permanent Secretary in the Ministry of Finance to the Auditor General on June 16, 2024, was to clear up that issue.
“However, instead of confirming that the $2.6 billion discrepancy had been resolved and that there was, in fact, no missing money, the Auditor General has avoided making any definitive statement on that very important matter in this Special Report and instead has chosen to make caustic remarks about the staff and systems in the ministry.”
Imbert said what was particularly disturbing about the Auditor General’s approach to this matter is the fact that at the exit meeting held on July 22, 2024, to complete the process of meetings on the Special Report, the audit team from the Auditor General’s Department—which included some of the most senior auditors in that department—openly expressed its satisfaction to the ministry’s staff that the adjustment of $2.6 billion was appropriately accounted for.
“However, the Auditor General, in her Audit Opinion on page 25 (of the Special Report), didn’t state that she was satisfied that the error in the Public Accounts for financial year 2023 was corrected,” Imbert said.
“We view this omission on her part as a continuing campaign of non-cooperation and criticism of public officials in the Finance Ministry by the Auditor General.”
Central Bank open to discussions
Imbert also said published excerpts of the Auditor General’s September 5 affidavit, in the constitutional matter against the Attorney General over the payment of legal fees to her attorney Anand Ramlogan, referenced extracts from the Special Report, although the report hadn’t been laid in Parliament.
“The premature disclosure of its contents is in our view, a breach of process. It is clear that the premature publication of that emotionally charged affidavit in the Sunday Express was designed to evoke public sympathy,” Imbert added.
He said in that article, Ramdass claimed the Central Bank (CBTT) denied her access to the Electronic Cheque Clearing System, which negatively impacted her ability to perform a proper audit and check of the system which led to the understatement of the $2.6 billion.
“We fail to see the connection between that alleged denial of access, and the confirmation that the $2.6 billion understatement had been resolved as stated by her Audit Team on July 22, 2024.”
Imbert said the Central Bank Governor told him that following a June 24, 2024 email request by an official in the Auditor General’s Department to examine the bank’s system and “GoAnyWhere” Platform, the CBTT requested official correspondence from the Auditor General with an outline of the scope of the potential engagement.
“The Central Bank indicated it was open and willing to meet with the Auditor General on the matter at any mutually convenient time,” Imbert added.
“I’m advised that to date, while it has received an outline of the scope of the proposed examination from a subordinate in the Auditor General’s Department, the bank has not yet received any correspondence from the Auditor General delegating authority to her staff to act on her behalf on this matter, nor has it received a proposed time or date for the earlier requested meeting between the Auditor General and the Governor. As such, the bank was unable to accommodate the request.”
Imbert said the Central Bank advised him that the Governor remains open to meeting with and discussing any matter with Ramdass.
“It is hoped the Auditor General will follow the established procedures and meet with the CBTT’s Governor on this matter or, alternatively, delegate authority in writing to the Deputy Auditor General or another suitable staff member to act on her behalf,” he added.
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