However, payment vouchers and adequate supporting documents like receipts, invoices, delivery notes etc. to ascertain the authenticity of this expenditure were not submitted for audit inspection. This is in contravention of section 73(1&3) of the Financial Management Regulation (FMR) 2007.
Furthermore, withholding taxes totaling Le62,078,440 (sixty two million, seventy eight thousand, four hundred and forty Leones) in respect of payment for goods and services were not deducted and paid to the National Revenue Authority.
The ASSL recommended that the Permanent Secretary (PS) should ensure that the pre-numbered payment vouchers should be prepared for all expenses and withdrawals and they should be supported by relevant documentation. Furthermore, that the relevant evidence in respect of the above expenditure totaling Le9,438,365,963 should be forwarded to the ASSL within 15 day(nine billion, s upon receipt of the report, or the sum involved is refunded immediately by parties involved.
Furthermore, the withholding taxes of Le62,078,440 should be recovered immediately and paid to the National Revenue Authority and evidence of such payment forwarded to the ASSL within 15 days upon receipt of the report. Moreover, the regulation of deducting withholding taxes and the payment of such to the National Revenue Authority should be strictly adhered to.
Officially responding, the PS stated that supporting documents relating to withdrawals totaling Le9,438,365,963 (nine billion, four hundred and thirty eight million, three hundred and sixty five, nine hundred and sixty three Leones) were now available for verification. He added that most of these payments were made to suppliers overseas and they relate to the Radio and Television Broadcasting House. He further said that they were constrained to make payment of withholding taxes to National Revenue Authority because of lack of TIN number. He however noted that withholding taxes withheld were still in the imprest account and that could be paid once the Tin numbers were available.
The Auditor in commenting stated that adequate supporting documents were provided for a total of Le2,316,860,563 (two billion, three hundred and sixteen million, eight hundred and sixty thousand, five hundred and sixty three hundred Leones) expenditure, leaving a difference of Le7,121,505,400 (seven billion, one hundred and twenty one million, five hundred and five thousand, four hundred Leones) without adequate supporting documents. This issue therefore remains unresolved. Evidence to show that withholding taxes were recovered and paid to the National Revenue Authority was not made available for verification. Our recommendation was not implemented. The issue remains unresolved.
Debate on the Audit Report 2016 has started in the House of Parliament.
