98% of food supplies were bought at higher prices

By Fijivillage

September 28, 2010, 7:43 am Fiji Time

1 min read

The Public Accounts Committee has revealed after analyzing the 2007 accounts of the military that 98 percent of the RFMF's food supplies were purchased at slightly higher prices from other suppliers because of the inability of the approved suppliers to provide the required quality and quantity in a timely manner.

It has been revealed that the approved suppliers of meat, eggs, dry goods, fresh vegetables and root crops were proving inconsistent suppliers and poor quality of goods.

The committee said due to this, the purchases were made from other unauthorised suppliers at a slightly higher price.

Meanwhile the committee said Trust Fund records revealed that reconciliations for 55 Trust Fund Accounts were not prepared for January to November 2007 although the reconciliation for December 2007 was submitted for audit.

The committee also said the accuracy of the reconciliation was questionable.

A total of 34 Trust Fund Accounts had overdrawn balances totalling over $1.5 million.

However the committee said it was advised that the overdrawn balance was due to mis-postings thereby emphasizing the importance of regular reconciliations.

The military has assured the Public Accounts Committee that there will be close monitoring of their expenditure after the committee analysed the 2007 accounts and the $45.5 million over expenditure by the RFMF.

According to the committee, the military incurred a total expenditure of $126.285 million in 2007 against the appropriated budget of $80.739 million.

The 56 percent over-expenditure came from established staff, travel and communication, maintenance and operation and purchase of goods and services.

The Accounts Committee also raised concern that the excessive over-expenditure was regularised through a retrospective approval by cabinet.

At the time when the $45.5 million over-expenditure in 2007 was highlighted in the budget accounts, the then Finance Minister, Mahendra Chaudhry and the military had highlighted that this occurred due to additional troops and operations after the events of December 2006.

They had said that the issues have now been dealt with.