The Institute of Chartered Accountants of Barbados (ICAB) has expressed concern about the “notable silence” from Government on troubling matters raised in the 2021 Auditor General’s Report, and has called for urgent action.
ICAB said the underlying theme in the report appears to be a lack of good governance, and it warned of serious consequences if the matter is not tackled.
“This is of serious concern as a lack of good governance can derail any attempt that Barbados has towards sustainable development. If this goes unaddressed, Barbados will continue to need the intervention of external agencies and may never fully be able to reduce unemployment or have its social programmes and policies achieve their intended objectives,” ICAB President Darshani Workman cautioned.
Stressing that one of the hallmarks of good governance is the ability to make informed decisions based on the availability of timely and accurate information, ICAB highlighted Auditor General Leigh Trotman’s findings that state agencies and Government departments in some cases not only provided accounts late but failed to follow the applicable reporting standards set out in the Public Finance Management Act 2019.
Workman insisted that Government has a responsibility to the people of Barbados to be able to demonstrate that it safeguards the assets to which it has been entrusted and that it operates transparently.
She noted this was especially significant with additional pressures being put on Government to provide support to the most vulnerable in the wake of the COVID-19 pandemic and the Russia-Ukraine war.
“It is vital that Government manages its finances in the most prudent manner to always create sustainable development. We believe that Government needs to have a detailed collaborative review with the relevant Ministries, Departments and Agencies to address the issues raised in the report.
“Best practices dictate the existence of adequate supporting documentation and a clear audit trail surrounding transactions,” Workman stressed.
However, ICAB commended Government’s recent appointment of Oliver Jordan as the Special Advisor for the Reform and Restructuring of State Owned Enterprises and expressed hope that the move will result in positive change, including bringing the many long outstanding audits up to date.
“ICAB hopes that Government will quickly take further actions to resolve the various issues raised in the Auditor General’s Report, in particular those that have been raised in successive reports. In this regard, ICAB continues to stand ready to be of assistance to the Government in whichever way necessary and to put into practice the slogan of the 2004 Barbados National Sustainability Development Policy, ‘Doing the right things by doing things right’,” the institute said.
