V18 bypassed procurement; IIP funds have no reliable system – NAO

The V18 Foundation ‘quite frequently’ bypassed procurement regulations whereas the IIP programm have no systems in place to ensure efficiency and reliability in collection of revenue, according to the National Audit Office.

The Annual Audit Report was tabled in parlament which comprised 29 reports on the operations of several governmnet department and entities.

The Internal Auditor Charles Deguara highlighted that the report contains 230 recommendations, which once implemented will  address a number of shortcomings identified during the audit assignments.

In summary, the NAO found that:

• Bypassing of procurement regulations, often accompanied by a lack of source documentation was undertaken quite frequently by the Valletta European Capital of Culture 2018 Foundation. Stocktaking records were also not available at the Stores falling under the responsibility of the Ministry for Gozo. Moreover, consular services, as reported by the Maltese High Commission in Canberra, lacked backing documentation.

  • Weaknesses in internal control procedures were prevalent at the Courts of Justice in so far as the collection of revenue from fines due. An audit on capital expenditure incurred by the Manoel Theatre identified serious corporate governance issues.
  • Lack of integrated information technology systems necessary to enhance efficiency and reliability of operations, including revenue collection, was evident during reviews of the Pharmacy of Your Choice Scheme and the Individual Investor Programme.
  •  Insufficient verification and enforcement procedures were identified during a review of expenditure on Public Social Partnership agreements entered into by the Ministry for the Family, Children’s Rights and Social Solidarity and on the provision of Long Term Medical Beds acquired by the Ministry for Health.