A 2023 audit report has uncovered significant lapses in payroll management by the Accountant-General’s Department (AGD) and the Human Resource Management Office (HRMO), resulting in the unauthorized payment of billions of Leones in government salaries and allowances.
Unapproved Arrears Payments, the report revealed that government employees were paid arrears amounting to NLe1,006,129.37 without proper approval or supporting documentation. This highlights a major weakness in the internal control system. The Auditor General has recommended that unjustifiable payments be recovered and that stringent verification and authorization mechanisms be enforced for arrear claims and payroll transactions.
In the area of failure to Deduct PAYE Taxes on Allowances: A review of six out of fifteen payroll categories found that allowances were paid without deducting PAYE taxes, resulting in an excess payment of NLe198,383.86. The auditors have urged the Accountant-General to recover these excess payments and ensure compliance with tax regulations.
The report also revealed that 60 personnel were granted study leave without documented approval or bonding agreements. The gross salaries paid to these individuals amounted to NLe2,180,090.11, raising concerns that eligibility requirements were not met. Additionally, NLe697,984.91 was paid as annual leave allowances to officers on study leave, violating Rule 6.20 of the Civil Service Code. The auditors recommended that the Director of Training and Career Development provide justification for these approvals.
NASSIT Contribution Discrepancies: Serious irregularities were found in NASSIT contributions and payments. There were discrepancies in the dates of birth of 108 staff between the Civil Service Management (CSM) system and the NASSIT database, while incorrect NASSIT numbers resulted in unverified payments. Additionally, 148 government employees had no NASSIT deductions or contributions made on their behalf. The total amount of unpaid NASSIT contributions stood at a staggering NLe134,927,621.91.
Salaries Paid to Overaged and Unidentified Employees: The audit also found that government employees above the retirement age continued receiving salaries without supporting evidence such as extension letters. The total annual gross salaries paid to these overaged personnel amounted to NLe56,424,942.07. Furthermore, some employees in the CSM lacked National Identification Numbers (NIN), creating a risk of financial losses for the government.
The findings of the 2023 audit report highlight a pressing need for robust financial oversight and stricter enforcement of payroll regulations to prevent further financial losses
