BY NED GAGAHE
The Office of the Auditor General’s (OAG) audit into the Economic Stimulus Package (ESP), highlighted significant issues in the allocation of $60 million in grants to the productive and resources sector.
The funds were distributed through the Ministry of Finance and Treasury (MoFT) payment system, aimed at providing essential support to local businesses.
The audit uncovered, a total of 1,515 payments were made to 165 businesses, but the nature of these payments remains unclear.
The report revealed that while some funds were directly allocated, others were used to procure equipment for businesses.
The audit uncovered that several retail businesses received multiple smaller payments, for beneficiaries, while some received larger sums classified as grants.
The OAG raised concerns over the procurement process, revealing that applicants selected their own suppliers without any formal competitive bidding.
Although the MoFT stated that a general bid waiver had been approved by the Central Tender Board, the audit suggests that this waiver did not comply with established procurement regulations.
Field visits conducted by the OAG indicated that while some supplies provided through the ESP positively impacted local businesses—such as equipment for fishing ventures and materials for tourist accommodation—there were notable discrepancies.
In one instance, an applicant requested an outboard motor and freezer but only received a generator, which, while useful, was not what they needed for their fishing business.
Another applicant received building supplies intended for debt repayment instead.
The audit highlights a lack of follow-up by officials regarding the delivery of supplies. In cases where grants were insufficient for applicants to complete their projects, some did not collect their supplies, resulting in windfall profits for vendors.
