The Government has this evening expressed its “deep concern” at the “content, tone and methodology” of the latest report issued by the former Principal Auditor. 

A statement continued: “While the Government fully respects the importance of independent public auditing and acknowledges the vital role that the Principal Auditor plays in supporting transparency and good governance, this particular report strays far from the standards of accuracy, balance, and impartiality expected of that office. In doing so, it reaches for a tabloid style which unfairly picks out untested claims in respect of officers in the public service without allowing time for, or giving due or any weight to, reasonable explanations as to actions, payments or resolutions of matters. 

“The document, stretching over 500 pages, contains numerous factual inaccuracies, selective disclosures, unjustified conclusions, and what appear to be politically loaded interpretations of both process and motive. 

“A detailed analysis of its content reveals not only serious errors which, when analysed, will gut the report of credibility, but also a repeated failure to adhere to accepted international auditing and ethical standards. 

“The Government has compiled a full record of correspondence between its departments and the former Principal Auditor’s office. That record makes clear that the engagement between the Government and the former Principal Auditor was, throughout the period under review, fluid, transparent, and constructive. Most requests were met with responses well within ordinary administrative timelines. Where matters were complex or required third-party input, communication remained timely and professional. This despite senior officers of the Government being deeply involved in supporting the Chief Minister in the ongoing treaty negotiations. 

“Yet, the report disregards this cooperative exchange and accuses the Government of obstruction and concealment. These accusations are simply not supported by the facts. They are misleading, unfair, and damaging to the integrity of the civil service and the public service as a whole. 

“After analysing the correspondence with the former Principal Auditor’s office, several instances have been identified where he wrote to departments on the 30 and 31 May and then states he did not receive a reply. It is wholly unreasonable to expect substantive responses by return on the same day, especially where letters were sent on 31 May, the final day of his reporting period. This calls into question the sincerity of those queries and suggests they may have been included purely to imply a lack of cooperation where none existed. 

“In one particularly concerning example, the former Principal Auditor claimed that audited accounts for the GHA for the years 2013/14 and 2014/15 had not been laid in Parliament as of 31 May 2025. In fact, the Minister for Health laid those accounts before Parliament on the 21st of May 2025, a full ten days prior to the cut-off date. This is not a minor oversight. It is a demonstrable factual error that casts serious doubt on the reliability of the rest of the report. More serious factual errors arise from the report which the Government will be referring to in coming days. 

“The Government also notes that the former Principal Auditor referred to the political affiliation of a senior official at the GDC, while failing to disclose that one of the RGP whistleblowers, whose claims also feature prominently in the report, is the spouse of a sitting GSD Member of Parliament. 

“Such selective disclosures reflect an obvious and worrying lack of even-handedness, a clear partisan approach with the former Principal Auditor appearing to favour the GSD Opposition, and further undermine confidence in the neutrality of the audit exercise. 

“Moreover, the report accuses the Chief Minister of acting “unconstitutionally” based on what appears to be the former Principal Auditor’s interpretation of the Gibraltar Constitution. This is an extraordinary assertion for any public official to make, and it raises profound concerns about professional overreach. This issue is of such gravity that HM Government of Gibraltar will address it separately in depth in the coming days. 

“In addition to these specific issues, the report fails to comply with a number of internationally recognised standards of auditing. These include: 

“The requirement of an auditor to communicate significant findings with management (in this case, the Government) and allow them an opportunity to respond before conclusions are drawn. This step appears to have been skipped entirely. 

“By failing to give the Government a chance to respond to findings, and by including political insinuations and legally unsubstantiated claims, the report compromises basic auditing principles. 

“The Government notes, too, that major parts of the report were reportedly drafted in the final week of the former Principal Auditor’s term in office. The lack of rigour and objectivity evident in many of the conclusions likely reflects the rushed nature of this work and raises questions about the seriousness of the process which has taken so long as a result of no failings on the part of the Government. 

“All of these concerns, taken together, point toward a report that is not only flawed, but fundamentally biased and therefore fatally compromised. The Government cannot ignore the clear pattern of conduct that has emerged, not just in this audit, but also in previous years, where the former Auditor has reported subjective conclusions and political undercurrents appear to be shaping the tabloid style of what should be a neutral, facts-based process. 

“It is a matter of public record that the former Principal Auditor, while still in post, took the unprecedented step of publicly demonstrating against the Government’s pay policy for high earners, thereby calling into question his impartiality in financial oversight. That concern is compounded by the known political affiliation of close family members of his with the opposition party, which, while not disqualifying in itself, ought to have prompted greater care to at least maintain the appearance of neutrality. 

“The combination of public protest, last-minute drafting, selective inclusion and exclusion of politically charged information, and the failure to engage with the Government in accordance with international audit norms paints a clear picture of a report that cannot be viewed as a neutral exercise in public accountability and therefore cannot be relied upon to reach any conclusion that cast aspersions on the political Government, the civil or public service or any individuals within it. The Government will continue to review the document in its entirety and will not hesitate to pursue all necessary steps to protect the integrity of Gibraltar’s public institutions. 

“The people of Gibraltar deserve a public audit process that is robust, impartial, and rooted in truth. 

“The Government will continue to defend those principles and will not allow this important institution to be diminished or politicised and will stand up in defence of the civil and public servants on whom Gibraltar relies.”