Audit delays, inaccuracies raise concerns in govt companies, PCB says
The PCB has repeatedly raised these concerns with company managers, auditors, and the Auditor General’s Office.
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The backlog of audits in government-owned companies in the Maldives has been increasing over the last three years due to delays in conducting annual audits, according to the 2023 annual report by the Privatisation and Corporatisation Board (PCB).
The report, released Monday, highlighted ongoing concerns regarding the failure of state-owned enterprises (SOEs) to submit timely audit reports. The PCB has repeatedly raised these concerns with company managers, auditors, and the Auditor General’s Office.
A key reason cited by auditors for these delays is the late submission of financial statements by the companies. The PCB has urged SOEs to appoint qualified Chief Financial Officers in accordance with established guidelines.
The report outlined the audit status of the government-owned companies for the past three years:
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In 2020, a total of 30 companies submitted audit reports.
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The Public Service Media (PSM), Road Development Corporation (RDC), Waste Management Corporation (WAMCO), Maldives Integrated Tourism Development Corporation (MITDC), Business Center Corporation (BCC), Fenaka Corporation, and Regional Airports Company Limited (RACL) did not submit audit reports for 2022.
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For the past three years, companies such as RDC and Project Management and Monitoring (PMM) have not submitted any audit reports.
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The 2022 audit reports of several companies, including State Electric Company Limited (STELCO), Maldives Hajj Corporation Limited (MHCL), Maldives Financial and Management Corporation (MFMC), and Housing Development Corporation (HDC), have also not been submitted.
The PCB report also pointed out issues with the quality and completeness of submitted audit reports. In several instances, auditors noted incomplete and inaccurate financial information in the latest audit reports of certain SOEs.
Key findings include:
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The audits of MITDC, RACL, and Andhra Pradesh International Airport identified discrepancies and false statements in the accounts.
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The audit reports of PSM and WAMCO were noted to have insufficient information for a comprehensive auditor’s opinion.
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Despite issues in audit reports from six companies, the overall statements were considered satisfactory.
The PCB has recommended that these companies address the inconsistencies in their reports and ensure accurate and timely submission of financial statements to auditors.
