AUDITOR GENERAL CONCERNED ABOUT NO-COMPLIANCE OF THE NATIONAL ELECTRIFICATION FUND

  • Points out serious lapses on the efficient operation of the Fund
  • Says there was P9.5 million overpayment

“The accounts of the Fund for the financial years ended 31 March 2018 and 2019 were audited by an independent auditor appointed by the National Electrification Fund Management Committee in terms of the Act.

Without modifying their opinion, in respect of both financial years, the auditors had pointed out non-compliance with the following requirements of the Fund Order.

For the financial year ending 31 March 2018, the Accounting Officer had not appointed the National Electrification Fund Management Committee which shall be responsible for the administration of the affairs of the Fund as set out under Section 7 (1) of the Fund Order.

Section 12 (2) requires that the accounts of the Fund shall be audited in accordance with the generally accepted international standards within 3 months after the close of the financial year to which these accounts relate. This requirement had not been complied with as the accounts for the financial year ended 31 March 2018 were completed in December 2019.

Within the same 3 months, Section 12 (5) provides that the National Electrification Fund Management Committee shall submit a report to the Accounting Officer on the conduct of the business of the Committee. This had not been done.

Within 6 months after the end of the financial year, the Accounting Officer is required to submit to the Accountant General the financial statements and the auditor’s report thereon. This requirement of Section 12 (6) had not been met.

The requirement of Section 9 (1) relating to the investment of the funds of the Fund had not been complied with although there were sufficient funds to justify investments as contemplated by the Fund Order.

The foregoing observations by the auditors would indicate serious lapses on the efficient operation of the Fund. In this regard it is noteworthy that the Ministerial internal auditors had reported an over payment of P9 577 350 to Botswana Power Corporation due to duplicate work orders. At the time of writing this report I was not aware of any action taken on this over payment.” Auditor General Pulane Letebele