The military has assured the Public Accounts Committee that there will be close monitoring of their expenditure after the committee analyzed 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 regularized through a retrospective approval by cabinet.

The committee said based on the 2007 accounts, it was greatly concerned that RFMF had purchased various military stores and equipment from several suppliers costing $21.148 million, and for which no funds were allocated in the budget resulting in over-expenditure totaling $20.183 million.

The Accounts Committee reveals that the RFMF purchased goods and services totaling $1.125 million from a preferred selection of suppliers that had not gone through the normal tender processes nor were competitive quotations obtained from them.

It said a retrospective approval was sought from the Minister of Finance through cabinet and an approval for a waiver from the Major Tenders Board was also sought.

The Public Accounts Committee said a physical inspection of the goods and stores revealed a disturbing trend where some stores were yet to be received from suppliers while the payments had already been made for the total amount of $5.335 million.
 
There was also old stock in store from previous years of stock ordered in 2007.    

The committee also highlighted that in 2007, the RFMF was allocated $152,400 for the purchase of vaccines and medical stores.

It said vaccines costing $231,648 dollars were purchased from Budget Pharmacy.

That resulted in an over-expenditure of $79,248 and was validated through a cabinet decision in August 2007.

It has been revealed that a large quantity of the excessive purchases was not used and was stored at the RFMF Pharmacy.

The military management comments to the committee indicated that vaccines were ordered in anticipation of additional troops for Operation Sasamaki.

The Accounts Committee said the vaccines purchased in 2007 were not properly stored to ensure their effectiveness.

They were stored in a domestic refrigerator which was insufficient to store all vaccines in stock.

The rest of the vaccines were stored on shelves in an air-conditioned room.

The total cost of drugs that were not properly stored was $73,607.

A Private Funds - Fines Account contained fines paid by RFMF servicemen as determined by the Internal Courts of the RFMF and was used mainly to provide loans to Senior Officers from the rank of Captain and above.

The Public Accounts Committee questioned the logic in the administration of the fund which appeared to be illogical.

It also said proper set of accounts had not been prepared and monthly bank reconciliations were not carried out during the year.

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.


Story by: Vijay Narayan