Secretary of the Institute of Internal Auditors Barbados Chapter and popular vlogger, Krystle Howell; and ICAB President, Andrew Brathwaite, shared their concerns and offered solutions during the panel discussion.
WHILE not suggesting that there is rampant corruption in the public service, President of the Institute of Chartered Accountants Andrew Brathwaite agrees that late submissions of financial statements could create weaknesses in the system, which could open the door for fraudulent activity.
He was delivering remarks during a forum hosted by the Institute of Chartered Accountants (ICAB) on Tuesday night entitled “Enhancing Public Financial Accountability: The Role of the Auditor General”, where he outlined some of the adverse opinions expressed by the Auditor General in the 2016 report.
According to Brathwaite, “The Auditor General does note that the submission of accounts long after the due period often leads to problems in finalising the audits and is of little help to decision-makers. The late submissions are also contrary to statutory requirements and can create an environment where fraud can thrive and remain undetected.
“That is the big concern. That if you are not preparing financial statements on a timely basis and getting them audited, that creates an environment where fraud can occur and remain undetected for long periods of time.”
It is this backdrop that the ICAB President noted that there is a need for the Prevention of Corruption Act passed in 2012, to be proclaimed in Barbados.
“This is relevant to the discussion not because I am suggesting that there is rampant corruption … but remember part of what the Auditor General said in the last report is that if accounting controls and systems are weak and if entities are several years in arrears on their financial statements and audits, then you are setting the stage for fraud and corruption.
“…It has long been recognised that you really need modern legislation to deal comprehensively with corruption. So the 2012 Act is based on modelled legislation under the United Nations Convention against Corruption. That is a 2003 Convention, which came into force in 2005.”
Brathwaite revealed that Barbados signed the Convention since December 2003, but has not yet ratified it.
“The way we will ratify it is when the 2012 Act is proclaimed because the Convention is a schedule to that Act. So the proclamation of the 2012 Act will basically bring the Convention into force in Barbados.
“The legislation covers preventative measures, which include declaration of assets. It is felt that it is more effective to try and prevent corruption before it occurs than to try and detect it after the fact and prosecute it. One of the ways that UN recommends that be done is through Declaration of Assets.”
He explained that there are other important provisions that do not exist within the Prevention of Corruption Act of 1929.
“Only Barbados and Syria have taken no further action since signing the Convention. I think there are some countries that have not signed the Convention. But of the ones that have signed … only two have taken no further action since signing and Barbados is included in that two,” he lamented. (JH)