Minister for Finance Omar Yussuf Mzee has cited violation of the Public Finance Act, 2005 as a major cause of misuse of public funds in the Isles.
He said most government executives have been spending public funds without having supporting documents to justify expenditures, a practice contrary to the Public Financial Act, 2005.
The minister stated that such practices smelt of corruption elements, noting that the government was making efforts to deal with the practices in ensuring good governance in the Isles.
The minister revealed this as he presented the implementation of the Public Accounts Committee (PAC) orders provided in 2012/2013 financial year.
He said that the practice has been complicating the exercise of verifying expenditures during auditing.
“Honourable Speaker, the lack of government expenditures’ evidence still persists in some government institutions here,” said Mr Mzee.
Earlier, the PAC chairman Omar Ali Shehe told the House that the Controller and Auditor General (CAG) reported a total of Sh2.4 billion that was used without illustrations in 2011/2012 fiscal year.
Nevertheless, Mr Mzee mentioned other shortcomings in the government institutions as delays in concluding the annual accounts and its subsequent submission to the CAG.
Others are; weaknesses of the internal auditing and control systems, fraudulent in pension’s payment to retirees and salary increment to employees which does not follow the required procedures.
House members are still debating the PAC report with the government’s reluctance in implementing reports on embezzlement of public property occupying the centre stage.