AEROTEL - $32.44 million paid out to 16 staff members without required approval of Ministry of Finance

Auditor General's Findings

Between January 2012 and December 2015, AEROTEL paid $32.44 million in Travelling Allowances to 16 members of staff without MoFPS approval. This was in breach of Section 20 of the PBMA Act, which indicates that in relation to emoluments payable to staff of a public body, the Board shall act in accordance with guidelines issued from time to time by the Minister responsible for the Public Service. AEROTEL’s failure to obtain the Minister’s approval not only breached the Government’s guidelines but also undermined the transparency and accountability process and has resulted in unauthorized payments.

Permanent Secretary (current): Alwin Hales

Breach Category: Resource Management

Permanent Secretary (at breach): Alwin Hales

Breach Type: Unsupported Decisions

Status: Full Compliance

Last Assessed: July 3, 2018

Year Reported: 2017

Year Resolved: 2018

Recommendation

Management should strictly adhere to the Government’s guidelines for the payment of travelling allowances and seek approval from the Ministry of Finance & the Public Service for the payment of travelling allowances to the 16 Officers. Where payments made outside the Government’s guidelines are not recovered, this may lead to surcharge of the responsible officers, as these payments would be deemed unauthorized, and also considered to be overpayments.

JAMP Update

On July 2, 2018, Aerotel received a letter from the Ministry of Finance and the Public Service providing retroactive approval of the payment to the travelling officers.