An audit of the Treasury’s fiscal activities uncovered that state officials are receiving both salaries and pensions simultaneously, which is against the law. The Treasury has been instructed to halt these dual payments starting January 2024 to comply with legal requirements.
What issue has the audit of the Treasury’s fiscal activities uncovered regarding state officials’ payments?
The audit has revealed that active state officials are illegally receiving both salaries and pensions concurrently, which is against the law. The Treasury has been instructed to stop these dual payments starting January 2024 to ensure compliance with legal stipulations that pension payments be suspended while an individual receives a state salary.
A recent audit has scrutinized the practice of concurrently paying salaries and pensions to active state officials. This issue was highlighted in a special report by the auditor-general’s office, which pointed out that such payments are not only questionable but also in direct contravention of existing laws. Specifically, the Treasury has been called upon to halt these dual payments immediately. The report, regarding the fiscal activities of the Treasury in 2022, firmly states that this practice must stop without delay, starting with the month of January 2024 and continuing onwards.
The law indicates that pension payments should be suspended while the individual is in receipt of a state salary. Despite this clear stipulation, the practice has persisted. In fact, the Treasury had announced earlier that it would resume pension payments to officials currently employed by the state, following advice to this effect from the attorney-general’s office.
Legal Context and Controversy
The legal landscape surrounding this issue has been turbulent. A legislative attempt in 2014 sought to end the simultaneous payment of pensions and salaries, but this move was met with legal challenges. Eventually, the courts deemed the law unconstitutional, affirming that pensions are a form of property that cannot be revoked. This ruling means that approximately 160 officials, both retired and active, continue to receive multiple pensions, a situation that includes high-ranking positions such as the president and four ministers.
Inconsistencies in Treasury Practices
The auditor-general’s report went further, shedding light on various accounting discrepancies within the Treasury. It pointed out that certain accounting practices did not align with the principle of receipts and payments, which should form the basis of the Treasury’s financial statements. Additionally, the report cited a failure to apply public-sector wage cuts, which were agreed upon as part of the 2013 bailout deal, to judges appointed post-legislation.
The Treasury also faces criticism for its lax oversight in verifying adherence to subsidised loan schemes for businesses and new home loans – initiatives introduced as part of the coronavirus pandemic relief efforts. Cases were discovered where the Treasury failed to secure necessary data or perform adequate checks at the time of receipt, leading to uncertainties regarding the accuracy of the recorded amounts.
Oversight of Subsidised Loan Schemes
The Audit Office’s findings did not stop with pension and salary discrepancies; it also highlighted oversight issues concerning financial aid. The government had put forward various schemes to support businesses and homeowners during the difficult times brought about by the pandemic. However, it seems there were gaps in how the Treasury managed and checked these schemes. For instance, there were instances where no supporting documentation was provided for the Treasury’s receipts, other than a credit note from the Central Bank or receipts lacking any indication of proper checks.
These observations underscore the need for stringent management and verification processes within government financial operations to maintain transparency and legality. The repeated call for immediate action suggests a growing impatience with the ongoing irregularities and a push for reform in the handling of both state official remuneration and broader Treasury accounting practices.
What issue has the audit of the Treasury’s fiscal activities uncovered regarding state officials’ payments?
The audit has revealed that active state officials are illegally receiving both salaries and pensions concurrently, which is against the law. The Treasury has been instructed to stop these dual payments starting January 2024 to ensure compliance with legal stipulations that pension payments be suspended while an individual receives a state salary.
What is the legal context surrounding the issue of dual payments to state officials?
The legal landscape surrounding this issue has been turbulent. There was a legislative attempt in 2014 to end the practice of paying both salaries and pensions simultaneously, but it was met with legal challenges. The courts eventually ruled that the law was unconstitutional, allowing approximately 160 officials, both retired and active, to continue receiving multiple pensions.
What were the inconsistencies in Treasury practices highlighted in the auditor-general’s report?
The report pointed out various accounting discrepancies within the Treasury, including practices that did not align with the principle of receipts and payments. It also highlighted a failure to apply public-sector wage cuts agreed upon in a 2013 bailout deal to judges appointed post-legislation. Additionally, there were criticisms of lax oversight in verifying adherence to subsidised loan schemes for businesses and new home loans.
What oversight issues were raised regarding the management of financial aid schemes for businesses and homeowners during the pandemic?
The Audit Office’s findings not only addressed pension and salary discrepancies but also highlighted oversight issues concerning financial aid. The report revealed gaps in how the Treasury managed and checked schemes designed to support businesses and homeowners during the pandemic. Instances were found where supporting documentation was lacking, raising concerns about the accuracy and transparency of the financial operations.
