ESP AUDIT: 1 officer signs 250 cheques worth $6.8m on behalf of beneficiaries without documented authorization

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In one of the sensational findings of the controversial Economic Stimulus Package (ESP), one of the officers managing the ESP had signed 250 cheques worth $6.8m on behalf of beneficiaries without documented authorization – with no further accountability to these funds—presenting fraud risk, the Auditor General David Dennis revealed today. 

The audit report into the controversial Economic Stimulus Package (ESP) was released this morning and has also found that many of the payments were signed by government officials on behalf of beneficiaries without documented authorization, including payments totaling to over $6m being signed by just one officer.

It uncovered extensive abuse of imprests issued under the ESP.

The audit released by the Office of the Auditor General has also found widespread mismanagement of public funds with missing documents making it difficult for auditors to fill many gaps.

The audit came out with 13 findings detailing breaches on how the funds were administered, lack of reporting and public accountability as well as conflict of interests.

Auditor General David Dennis revealed these to journalists this morning in a workshop with the media to explain his office’s findings on the ESP.

History of ESP

In anticipation of the negative economic fallout of the COVID-19 pandemic, the government implemented the stimulus package (ESP) of $309m dollars to support and enable business and households to continue to produce, trade, employ people, spend and boost aggregate demand in the economy.

It was approved by Cabinet on 6^th May 2020 and applications were accepted as of 26^th May of the year with payments made over 2020-2021.

Outcomes

Dennis told journalists today of the lack of laws, rules and administrative resources to manage the ESP.

He said there was no underlying laws or rules (procedural guidance) for issuing grants on the scale of that the ESP involved.

Dennis added that the resources needed to adequately receive, process, pay and document the thousands of applications were grossly underestimated resulting in weak internal controls.

He also pointed to the abuse of imprests under the ESP, where by one officer was able to sign imprests totalling up to $6.8m.

“We found significant cash cheques were signed for by government officers and others on behalf of beneficiaries with no documentary evidence available that the beneficiaries received the funds, presenting a fraud risk.

He explained that methodology to this was a cheque was prepared, made out to cash and then an officer would sign for the cheque.

“It is not clear from the record what had happened to the cheques. Also, payment made this way was signed for by three officers with one of these officers signing for 250 cheques with a total value of $6.8m. Most of the forms authorizing the release of payment was also signed by one of the three officers although no instances where the officer authorized the release of payment to him or herself.  There was no further accountability to these payments,” he said.

• More to come-