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Over 3 billion birr is unaccounted for from 138 federal government offices according to the latest report by the Federal Auditor General.
The General Auditor Gemechu Dubiso in his report to the House of People’s Representatives said that the parliament should take action against state institutions that are found mismanaging the federal government’s funds.
A report by, tabled for MPs on Tuesday April 22, indicated that 40 state enterprises did not audit their accounts for over two years, while 77 other institutions did not collect over 877 million birr on time.
Twenty-five other institutions, the report discloses, made 202.5 million birr payments irregularly.
“The situation is worsening instead of improving when it comes to government institutions that do not undertake and deliver financial and audit reports on time; and it needs great attention and legal measures,” said Gemechu.
The 54-page report detailed how 138 government institutions spent their budgets and managed properties during the last fiscal year that runs from July 8, 2012 to July 7, 2013.
The report also criticized German development cooperation GIZ for the way it implements government projects, stating that out of the 475 health facilities built through the GIZ, 51 percent of contracts were awarded without proper tendering. Moreover the projects incurred an additional cost of 105.3 million birr and out of 475 health stations constructed by GIZ 104 were found to be below standard.
Further, the report stated, institutions such as the Defence and Foreign ministries, and some state universities, failed to pay their clients 472 million birr on time.
To reduce mismanagement of finances and properties in government institutions, the Auditor General recommended that Parliament empower the office to prosecute the heads of the institutions found culpable.