NATIONAL PARLIAMENT OF
PUBLIC ACCOUNTS COMMITTEE TRANSCRIPT
(Inquiry into the Civil Aviation Division, Ministry of Infrastructure
and Development)
(Uncorrected Version – subject to
changes upon revision)
Mr Chairman: The
Chairman welcomes the Committee to another Committee hearing,
especially thank you the Permanent Secretary of Ministry of Communication
Aviation and Meteorology for availing yourself.
As you are all aware, the function of the PAC Committee is to review and
examine the public expenditure as part of the oversight function of
Parliament.
In previous meetings of Parliament, the Auditor
General’s Office has tabled 8 reports in relation to expenditure by government
departments. There was on meeting of the Committee unfortunately the Leader of
the Opposition is you is apologies and will not be joining us today. Now we have result last time and that we went
through some reports are still a number of reports are still outstanding. For the purpose of this meeting we will look
into the Civil Aviation Treasury report audit report to the affairs of the
Civil Aviation Division of the Department of Infrastructure and Development. Before
we deliberate on this matter we will probably give this opportunity to the
Permanent Secretary to brief us on this report.
Thank you.
Permanent Secretary: Thank
you Chairman of the Public Accounts Committee and Members of the
Committee. Just to
very briefly update the Committee, the full audit report on Aviation was
forwarded to the Office of the DPP last year.
The audit findings are in three parts: part (a), part (b) and part
(c).
Part (a) of the audit report, as you will note presents
an overview of the key findings, the background and summary of audit findings and
recommendations on the operations of the agreements and contract that were entered
into by the civil aviation that was subject to abuse and misappropriation by
those responsible and therefore the need for Police and DPP to determine
whether there is any criminality involved in the operation of the unauthorized
trust accounts referred to in the audit report and any other unaccounted for using
public funds by those implicated through further investigation.
Part (b)
of the Audit findings reveals that the control breakdowns has got to do with the
management and administration over the collection and recording of revenues
from boarding charges, that is airport departure taxes, ….. fees
and landing fees that have resulted in revenues that were either grossly over stated
compared to the revenue actually receipted then. Those recommendations are matters
for the accounting officer, that is the PS to
implement to ensure that relevant financial instructions on revenue collection are
strictly adhered to.
Part (c) of the report, which is this one, are
recommendations of the report on the irregularities from the various sections
of the report itself, in particular payments made to third parties by Air Services
Australia at the request of the Civil Aviation Divisional Personnel into private
bank accounts and in cash abuses of funds again being unaccounted for and must
be investigated by Police.
Equally so are the over payments and suspected
coordinated activities in the maintenance contract for the international and
provincial airfields. That is the main
reason why the audit report had to be submitted to the DPP. A copy of the same was sent to the
Commissioner of Police at the same time so that the CID is alerted to the
findings of the audit report, and a copy of the same is forward to the
Secretary to Public Service.
The latest is that I have been waiting in
anticipation to hear back from the office of the DPP as to the progress of what
the Ministry had requested and that is calling for further investigations.
Today I received a faxed note from the office of
the DPP after several attempts to try and ascertain as to where the status of
the investigation has gone, and this is what I have received.
This is from the office of the Director of Public
Prosecutions, from one of the DPP legal personnels. This matter was allocated to me earlier this
year and I have considered this matter at some length. The report, as you are aware is lengthy and detail.
There were numerous recommendations
contained within the audit report which still needs some further investigation.
It does however appear that there are
some individuals who should face criminal charges. We will however need more information before
we proceed. These are the information
that we would depend very much on the investigation itself because the audit has
done its work. Any charges will be
discussed with the Director of Prosecutions in detail before charges are laid.
You will note Chairman and Members that some of
the individuals implicated in the reports are no longer employees of the
Solomon Islands Government. Two expatriates have since left who were also implicated
and that is why this report has to go to the DPP and the Police.
We have also discussed with the Defense
Personnel of the Australian High Commission requesting for their cooperation when
comes to the case being referred to the Australian Federal Police to
investigate on their own citizens, one is an Australian, one is a New Zealander
but permanently residing somewhere in Australia. These two gentlemen are very seriously
implicated in the findings of the Audit team.
Some of our people are Solomon Islanders are no
longer in the Service. Some are
seriously implicated. I do not have the authority to deal with those who are no
longer serving in the Public Service. I only have the authority to impose
disciplinary measures on grounds of misconduct over current officers and that
is why this audit report or the findings of the report had to be sent to the
appropriate authority. That’s the latest
I got, chairman and Members of the Public Accounts Committee. Thank you.
Chairman: Thank
you Permanent Secretary. There you are
Members and colleagues, this report has been referred to the office of the
Director of Public Prosecution and they are now looking into these allegations
and they are looking at the reports itself and seriously looking at the alleged
conduct misconduct in the office by those who are responsible as the Permanent
Secretary has raised some of the officials were involved have left government
service are both locally and overseas.
That I would like indulgence on this before we proceed your views on
these, Auditor General, comments from Members seeing the matter is before the Police
and the office of the DPP.
Deputy Auditor General: I could
make a quick comment .............................
Auditor General:
Chairman just a note on the statement made by the Permanent Secretary in
regards to the local staff or nationals who were employed by the Civil Aviation
in the Ministry and have left are in terms of the criminality I can’t comment
on that. But in terms of recovering the
costs to the government in Section 22 of the Public Accounts Act provides or
empowers the Minister of Finance to search such an officer or a former public officer
to recover revenue that has not been collected or payments that have been made prominently. So that .................
I just want to remind the committee on that provision of the Act which empowers
the Minister of Finance and perhaps that it might take note on that in this recommendation. Thank you.
Deputy Auditor General: I just
want to make few comments on that Mr Chairman. The Permanent Secretary is referring to an
earlier report this does not confusing the members which refers to part A, B
& C which is the draft report which has a lot of information provided for from
the department ......... that the report that the committee is looking at is
likely breach that is not the same report the committee is understands are the
different version of the report, its normal process where we provide all the
details that the department including names including the versions .............
rather than the public dockets that confuse from public comment. But that is provides that department the DPP
and in other part, on the other comment Mr Chair this
ordered are taken now some years down the tracks allot of allegation and issues
is where discuss the need in another forum and I ordered to participate on
....... who left Solomon Islands .............. knowledge not strong as
otherwise as a money that taken a comment a lot of issues are now are some more
taken as such indeed to ensure that
there has been appropriate actions taken over recommendation so whilst there
are issues and regularities other issues that are made other hand is the court
we may made recommendations all which need has some action taken are all
indication of which we are going for as far as the committee purposes to get
action planning in place, because in this stage we does .......... in case I
ask the Permanent Secretary to work through the committee on how it progress on
those recommendations are within Ministries jurisdiction and recognized others
..........depended upon in jurisdictions.
Permanent Secretary:
Chairman, can I make a comment.
The letter received here is to appear before the Committee to give oral
evidence not requesting an action plan.
That was dated
Auditor General:
Chairman, again what my deputy is saying that apart from the issues of prominently .................... there were other
recommendations in which were included in the report so what we are saying here
perhaps that also should highlight that the Ministry should undertaken to
address the issues pulling back the ......... management ............... the
contact and well its up to the committee to consider if that is important. But in our view as far as we want to take the
criminal to face the force of law to ensure that financial management
procedures are ........ and
there is protocol management. Especially
in view of the Minister of Finance report ........... for citizen account the measures to be replaced. Thank you Chairman.
Chairman: Thank
you, there were 88 recommendations in that report now as I put aside the
criminal aspects there are recommendations are made by the department or
actions to be taken are more so on financial aspects on accounting of systems
and in my view the committee we would want to get some feed back from the
Permanent Secretary but I still think that you need some of your officials maybe
the Director of Aviation, but by the way have read this report Permanent
Secretary.
Permanent Secretary: I have
including the ......... copies.
Mr Severino: Yeah Mr
Chairman I would like to thank the Audit Department for producing this very
important report which is telling us a lot of discrepancies ......... actions
that are been taken. However, it is with
the Director of the Public Prosecution for deal with ...........
criminality.
But I can say here Mr Chairman that rather
then waiting for those things or those charges to committed
........... it is time now rather then we put
in place as the Auditor General has said and action plan and that should be in
line with the financial management regulations or financial requirements that
are in place in the country. I mean my
understand from the ......... that the numerous has made that a lot of these people
has left the organization and anyway even if we want to recover from our local
officers that have left the organization, we will still find problems as they
are not employed and that could include lead to another case laid against them
and that would prolong the whole idea of trying to revive or to put in position
this Civil Aviation Ministry this is one of the important measures receive or
raises revenue for the government so rather then we talking about the issue
that we know that they are already cone with the Director of Prosecution we
should now find strengthen the division and with the help of the Ministry of
Finance ...... to come with actions of plan that would help them follow
........ from now on.
I know that in much of this ministry most of these ministries there are
very few ......... and what we could say here is where is leakage is ..........
because they are the person advising the Permanent Secretary as well to see
where the discrepancies and also as I noted here the issuing of imprest