The Auditor General: "Good Governance is a Pillar of Public Trust"

The 2024-25 audit report reveals persistent gaps in public fund management, affecting procurement, expenditures, projects, and the follow-up on recommendations, despite efforts from various ministries.

In his preface to the Annual Audit Report for the financial year 2024-25, made public on Friday, the Auditor General, Dharamraj Paligadu, presents key observations from the audits conducted across ministries and departments.

He notes "gaps including inefficiencies in procurement; weak revenue controls; inadequate expenditure tracking; deficiencies in project and contract management; and insufficient follow-up on recommendations by audit committees." According to him, "these gaps compromise efficiency, service delivery, and the value provided to citizens."

These deficiencies directly undermine the effectiveness of service delivery and the value provided to citizens. They particularly concern procurement procedures, revenue control, expenditure tracking, project and contract management, as well as the lack of follow-up on recommendations by audit committees.

The report highlights that these gaps persist despite observed efforts in some ministries and departments to improve internal controls, budget execution, revenue management, and procurement practices. The director emphasizes that "good governance and accountability remain the pillars of public trust," and that the observations aim to strengthen financial governance and accountability in the public sector.

Quantitatively, the number of recommendations has significantly increased. The report states: "More than 720 recommendations were made this year, compared to 363 the previous year." Regarding the follow-up on the recommendations from the 2023-24 fiscal year, the assessment is precise: "Of the 363 recommendations, 150 (41%) were implemented, 143 (40%) were partially implemented, and 70 (19%) were not implemented as of February 2026."

The auditor general issues a direct call: "I urge all accounting officers to fully consider the observations and decisively implement the recommendations. These actions must lead to concrete improvements in service quality and value for money for citizens." He stresses the importance of effectively implementing recommendations to ensure transparency, efficiency, and independence in public administration.

A Public Audit Bill in Preparation

The mandate of the National Audit Office (NAO), defined by Section 110 of the Constitution and the Finance and Audit Act, requires the examination and certification of all public accounts. Recent amendments to this law clarify the responsibilities of accounting officers and strengthen national governance.

The auditor general also discusses the emerging role of public sector auditing, which is evolving towards a broader approach that integrates performance, sustainability, forensic audit, and technologies such as AI. Despite these advancements, challenges remain: limited human resources, evolving standards, and increasing stakeholder expectations. The NAO is currently preparing a Public Audit Bill to consolidate its financial autonomy and organizational independence.