Auditor-General raises annual report concern

ONLY six out of the 25 companies in which Government held investments submitted their 2016 audited financial statements.

This was noted in the 2016 Auditor-General’s Report.

Under the Public Enterprise Act, the board of a government commercial company or commercial statutory authority was required to submit its annual report and the audited consolidated financial statements within five months after the end of the current financial year.

These were to be submitted to the Public Enterprise Minister, the relevant minister and the Minister for Economy.

“The audit noted that only six out of the 25 companies in which Government held investments submitted their 2016 audited financial statements.

“The audited accounts of government commercial companies and commercial statutory authorities contain information that is necessary for an informed assessment of its operations and those of its subsidiaries, including a comparison of its performance with its statement of corporate intent.

“As most entities did not submit their latest financial statements and annual reports, their performance cannot be monitored and the viability of their business operations cannot be assessed,” the OAG said.

“Thus, it is not possible to assess their financial performance which could limit Government from making essential and sound decisions in regards to the operations of these entities.

The OAG recommended the Ministry of Economy work with the Ministry of Public Enterprise to ensure that annual reports and annual financial statements are promptly submitted by state-owned entities.

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