Public Finances - Rodrigues: The PAC Warns of Failures in Fund Management

Public finances in Rodrigues are poorly managed, according to the Public Accounts Committee (PAC). The first report from the regional assembly blames budget holders for repeated non-compliance with regulations, leading to costly failures in key environmental projects and undermining the credibility of the administration.

The PAC's first report from the Fifth Regional Assembly of Rodrigues, submitted this week, paints a troubling picture of public fund management for the period 2020-2024. Based on reports from the Director of Audit, hearings, and site visits, this 32-page document targets three commissions: Environment, Agriculture and Fisheries, and Health and Social Security. It highlights recurring issues with financial compliance, procurement, and project oversight. "The Committee has identified a number of shortcomings and weaknesses that negatively impact sound public financial management, the efficient use of public resources, and the quality of service delivery to citizens," writes Jean Rex Ramdally, PAC chairman, in the foreword.

This report, submitted to the Rodrigues Regional Assembly (RRA) in line with parliamentary practices, aims to enhance transparency and accountability. It is based on 39 meetings, five hearings, and five site visits. Despite challenges, such as a lack of timely responses from departments and the absence of technical support from the National Audit Office, the Committee remains committed to its mission. A complaint for privilege has even been filed with the assembly president after the head of the Agriculture Commission department failed to attend a hearing.

Failures in Key Projects

The report emphasizes the persistence of dysfunctions despite previous reminders. "It is regrettable to note that, notwithstanding repeated reminders of responsibilities and administrative obligations, budget holders continue, in several cases, to disregard the principles and basic requirements established by law, financial management manuals, guidelines, and circulars," observes the Committee. Among the essential governance measures reiterated are appropriate handover procedures during administrative changes; systematic application of penalties for contract delays; establishment of budget monitoring mechanisms at the commission level; and strict compliance with public procurement laws.

The PAC, established by the regional assembly to review appropriation accounts and annual financial statements, derives its powers from Article 63 of the Internal Regulations, reproduced in the annex. This first report of the Fifth Assembly covers the Director of Audit reports for the fiscal years 2020/2021 to 2023/2024, focusing on three commissions. "The report focuses on three commissions – the Chief Commissioner's Office: the Environment Commission and others, the Agriculture, Fisheries and others Commission, and the Health, Social Security and others Commission – and outlines the key observations, conclusions, and recommendations of the Committee aimed at strengthening compliance with laws and regulations, improving project and asset management, and promoting transparency, accountability, and good governance within the Rodrigues Regional Assembly."

The core of the report examines three flagship environmental initiatives under the Chief Commissioner's Office, revealing recurring weaknesses in project design, contractual oversight, compliance with tenders, performance monitoring, and post-delivery management.

"Across the three cases, recurring weaknesses have been noted in project design, contractual oversight, compliance with tenders, performance monitoring, and post-delivery management," states the Committee.

The biodigester project at Le Chou, launched in 2017 and co-financed by the European Union and the RRA for Rs 20 million, aimed to generate energy from household organic waste for 153 disadvantaged families. Only 141 units were installed, and as of September 2022, only one was connected to a kitchen. "Although an EU expert recommended corrective funding in 2022, no further action was taken." A technical review in 2022 confirmed that none were operational due to incomplete site preparations, material shortages (notably cement), delayed payments to workers, and refusal of access by beneficiaries. Some withdrew their consent, complicating repairs. A departmental inquiry was conducted, but "no final report was submitted to the Commission."

Pilot Model

The wastewater treatment plant in Grenade, awarded in March 2020 for Rs 24.6 million, was initially reported as non-operational. Shortcomings included expired insurance, lack of penalty enforcement, and extended completion dates. Auditors recommended expediting completion and imposing penalties, but "there was no evidence that these actions were implemented." During the Committee's review, the plant was handed over to the Rodrigues Public Utilities Company (RPUC), although payments are still due. The consultant applied the FIDIC framework for damages rather than the procurement policy office requirements, certifying claims without internal verification, increasing risks. Effluent testing dates back to 2023, and a memorandum of understanding with the RPUC is pending.

The Eco-Village project at Rivière Coco, executed from 2017 to 2020 for Rs 15.7 million (funded by the EU, the Central Electricity Board, and the RRA), demonstrated a 100% renewable energy coverage model by 2030. Comprising six biodigesters, photovoltaic panels, and solar lighting, it targets a pilot model. The photovoltaic installation still generates Rs 30,000 monthly, with over Rs 2 million in total revenue, but other assets are deteriorating: a non-operational electric vehicle, nearly half of the solar streetlights corroded by coastal conditions, a relocated charging station, and six inactive biodigesters. Consulting services were engaged outside standard procedures to meet donor-imposed deadlines, according to officers heard. Incomplete or missing procurement files persist, with allegations of transfers between commissions.

The Committee’s findings point to "inadequate project preparation, including technical design, weak internal verification capacity, and lack of clear operational accountability."

Opacity and Delays

The report then addresses the Agriculture, Fisheries, and others Commission, criticizing the recovery and disposal of fishing boats, the Honey Research Center, and the gene bank of crops, assets of the Fish Protection Service (FPS), the Livelihood Alternatives Scheme and socio-environmental programs, the agricultural sector, and a coffee processing project. Gaps in asset management and compliance are highlighted, with no exhaustive details in the provided excerpts. The foreword mentions persistent failures to submit information in a timely manner, forcing a complaint for non-assistance.

For the Health, Social Security, and others Commission, the Committee laments cumbersome interactions, with observations on attendance and allowances tracking, home medical visits, and contract and consultant management. "The Health and others Commission has continued to fail to submit the required information within the prescribed timeframe." Recommendations aim to improve monitoring.

The final chapter formulates cross-cutting recommendations for better governance, concluding with a call for value for money. "Such deficiencies, if not corrected, could also affect the reputation of the Rodrigues Regional Assembly in the eyes of international donors and development partners."