PUBLIC ACCOUNTS COMMITTEE FINDINGS, RESOLUTIONS AND RECOMMENDATION

The findings and the recommendations of the PAC were delivered on 10 April, 2015, during a press conference that was held at the Pigs Tusk, Parliament House.

Findings and Resolutions of the Hearing conducted on the 1^st to the 9^th of April 2015

Institutions do not comply with the Public Finance and Economic Management (PFEM) ACT, (17) 1.
Authorities supervising the institutions do not know about the PFEM ACT and own ACTs.
Many of these institutions manage to pay their salaries and benefits however failed to pay the government dividends.
Board members do not know how to administer their institutions.
There is no accountant hired in some of these institutions, and they have not recruited professional accountants to do professional duties.
The Heads of Institutions do not worry about breaking the law.
Money allocated and collected are State Money/ Public Fund – Part 10, subsection 43 (1).
The Public Accounts Committee used the Police on several cases to summon people, however did not prosecute anyone.

Recommendations

PAC to ask the Prime Minister and the government to:

Relook at the government state owned enterprises – if not paying any dividends then government must reconsider decisions.
Public Service to enforce the law of the Public Service: a) When recruiting b) When they (Public Servants) do not do their jobs.
Ask the Public Service to enforce cap 246 (section 33 on allowances) – fees for official services when Director Generals and Directors are sitting as board members and receiving allowances.
VNPF – re-establish its subsidy companies (Limited Companies): Members Financial Services Limited (MFSL), Ranch de Bouffa Ltd, VNBR with regards to their reporting requirements.
Government Remuneration Tribunal – check all salary scale across the board.
NISCOL – restructure before extending the concessional agreement.
Amend the Expenditure Review and Audit Act to enable the PAC and AG to punish to noncompliance to PFEM Act.
Ask VNPF to stop investing for the time being.
Ask the government to establish the Public Accounts Office – budget of VT5, 000,000.
Increase PAC budget: VT3, 000, 000 x 3 Hearings/year = VT 9, 000, 000.

The List of Government Statutory Bodies (GSB) and the years that they have not submitted their reports including the re-scheduled deadline for submissions:

#	Government Statutory Body	Financial Statements & Audit Reports	Deadline 2015
1	Vanuatu National Provident Fund	2013	June
2	Vanuatu National Provident Fund	2014	June
3	Member Financial Services Limited	2013	June
4	Member Financial Services Limited	2014	June
5	Bouffa Ranch Limited	2013 – 2014	June
6	Asset Management Unit	2007 – 2014	June
7	Vanuatu Tourism Office	2011 – 2014	June
8	Vanuatu Broadcasting & Television Corporation	2008 – 2009 / 2013	June
9	Vanuatu National Housing Corporation	1998 – 2014	June
10	Vanuatu Financial Services Commission	2010 – 2014	June
11	Chamber of Commerce & Industries	2013 – 2014	June
12	Vanuatu Institute of Technology	2004 – 2014	June
13	Vanuatu National Training Council	2005 – 2012	June
14	Vanuatu National Training Council	2013 – 2014	June
15	Vanuatu National Cultural Council	2010 – 2014	June
16	Vanuatu National Sports Council	2005 – 2014	June
17	Airports Vanuatu Limited	2012 – 2014	June
18	Vanuatu Livestock Department	2004 – 2013	June
19	Vanuatu Commodities Marketing Board	2001 – 2014	June
20	Vanuatu Institute of Education	2004 – 2014	June
21	Vanuatu Nursing Council	2004 – 2014	June
22	Malvatumauri Council of Chiefs	2005 – 2014	June
23	Terminal Services Limited	2012 – 2014	June
24	NISCOL	2007 – 2014	June
25	Provincial Kava Authority	2013 – 2014	June
	Provincial Councils & Municipalities	Financial & Audit Reports	Deadline
26	Port Vila Municipality	2005 – 2014	June
27	Luganville Municipality	2005 – 2014	June
28	Lenakel Municipal Council	2009 – 2014	June
29	SANMA Provincial Council	2005 – 2014	June
30	PENAMA Provencal Council	2005 – 2014	June
31	TORBA provincial Council	2005 – 2014	June
32	SHEFA Provincial Council	2005 – 2014	June
33	MALAMPA Provincial Council	2005 – 2014	June
34	TAFEA Provincial Council	2005 – 2014	June

Government Statutory Body/Bodies…

…That lack qualified professional accountants:

Vanuatu National Housing Corporation
Vanuatu National Training Council
Vanuatu National Cultural Council
Malvatumauri Council of Chiefs
Vanuatu Nursing Council
Vanuatu Broadcasting & Television Corporation
Vanuatu Institute of Technology
Vanuatu National Sports Council
Airports Vanuatu Limited
Air Vanuatu Operations Ltd
Vanuatu Livestock Development Ltd
Vanuatu Commodities Marketing Board
Municipality of Port Vila
Municipality of Lenakel
Vanuatu Institute of Education
Provincial Kava Authority
VNBR – Just established

…That have qualified professional accountants:

Vanuatu National Provident Fund
Members Financial Services Limited
Ranch de la Bouffa Limited
Asset Management Unit
Vanuatu Tourism Office
Vanuatu Financial Services Commission
Vanuatu Chamber of Commerce
Terminal Services Limited
NISCOL
Municipality of Luganville
SANMA Provincial Council
PENAMA Provincial Council
MALAMPA Provincial Council
SHEFA Provincial Council
TAFEA Provincial Council
Utilities Regulatory Authority
TORBA Provincial Council

…With no “qualified CEO” or “no proper administration” giving reason for non-compliance to PFEM Act/own Act/ Companies Act:

Airports Vanuatu Limited
NISCOL

…Who have “no knowledge of the PFEM Act” or are not aware of the PFEM Act:

Air Vanuatu Operations Ltd
Vanuatu Institute of Education
Vanuatu National Provident Fund
Members Financial Services Limited
Vanuatu National Housing Corporation
Vanuatu National Sports Council
Airports Vanuatu Limited
Terminal Services Limited
Provincial Kava Authority
Vanuatu Livestock Development Ltd
Vanuatu Commodities Marketing Board
NISCOL
Municipality of Luganville
Municipality of Port Vila
Municipality of Lenakel
SANMA Provincial Council
MALAMPA Provincial Council
SHEFA Provincial Council
TAFEA Provincial Council
VNBR

…Listed for liquidation on approval by COM or de-registered:

Asset Management Unit
Provincial Kava Authority – De-registered in 2006.

…Who have faced “problems due to preparation of financial statements by another accounting firm”, or who have had a “change of auditors therefore difficulty encountered”:

Vanuatu Broadcasting & Television Corporation
Vanuatu Tourism Office

…A declaration of 0% was made by the board which resulted in the delay of the provisions of the financial statement on time to the Auditor General: