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GSD: “Government Sidesteps Constitution On Overspending And Blocks Work Of Principal Auditor“

05 February 2021
GSD: “Government Sidesteps Constitution On Overspending And Blocks Work Of Principal Auditor“

The GSD has accused the Government of “breaching the spirit of the constitution on public finances”.

A statement from the GSD follows below:

The Government recently issued instructions to Departments through the Chief Secretary and Financial  Secretary to ensure they follow financial instructions. But when is the GSLP Government going to correct the  fact that the Government itself is breaching the spirit of the constitution on public finances and obstructing the  work of the Principal Auditor? It is the height of financial hypocrisy not to do so.  

In delaying the taking of three years of Supplementary Appropriation Bills not only is the Government failing  to obtain Parliamentary approval for overspends as required by s69 (3) of the Constitution but is also  preventing the Principal Auditor from completing his work.  

Roy Clinton the GSD Shadow Minister for Public Finance stated:  

“I have previously brought to the attention of Parliament the logical need to ensure that a particular year’s  supplementary appropriations (or overspends) are approved by Parliament prior to (or concurrent with) the  subsequent year’s Budget. This is evidently the spirit of s69 (3) of our Constitution.  

In addition this affects the work of the Principal Auditor, as recognised by the Chief Minister on 2 March 2016 in  Parliament, in that the Principal Auditor is unable to complete his audit of the Government’s annual accounts.  

There are now three years of Supplementary Appropriation Bills on the order paper for the years ended 31 March  2017, 2018 and 2019, meaning that the last published report of the Principal Auditor is for the year ended 31  March 2016. Those Bills have been there for a long time and remain dormant. When will those Bills be taken? If  they aren’t taken it is in direct contradiction to the culture of economic responsibility which the Government say  they now support. This delay is unacceptable and Covid-19 cannot be used as an excuse for not considering these  finance bills earlier.  

The Financial Secretary in his recent circular has gone to great pains to remind Controlling Officers of their  responsibilities under the Public Finance (Audit and Control) Act, in light of the public finance crisis we are facing;  but I would remind Government that they in turn have a responsibility to Parliament to account for their past  overspending.”