Parliamentary tensions peaked last week following the Federal Auditor General’s report that unearthed unprecedented financial mismanagement across various federal agencies. As legislators geared up to vote on the budget bill for the upcoming fiscal year, the report presented by Auditor General Meseret Damtie pressed for wariness and integrity in governance.

Finance Minister Ahmed Shide and Transport Minister Alemu Sime (PhD) were among the few cabinet ministers present, while Minister of Labor & Skills Muferiat Kamil and Trade Minister Gebremesqel Chala left early, perhaps anticipating the storm of criticism about to be unleashed. According to a Parliamentarian, the glaring absence of high-ranking officials running the agencies subject to audit fault demonstrated a troubling trend undermining the federal legislator's oversight capabilities.

Parliament's Deputy Speaker, Lomi Bedo, conceded that the dearth of senior executive branch members should be addressed.

"It [the session] wasn't about between us and the auditor general," she said, pledging to refer the issue to the Parliament standing committee responsible for compliance.

Despite the modest turnout, the Auditor General commanded the room as she laid bare the financial mismanagement and legal breaches plaguing numerous federal agencies over the past year. She painted a stark picture: 14 billion Br in unaccounted allowances and returns, 19 billion Br in unspent budget across 101 agencies, and a mere 79 out of 169 agencies receiving unqualified opinions. While 15 agencies received adverse opinions, 10 institutions could not be audited due to security concerns. The number of agencies receiving qualified opinions dropped by 15 to 50.

Among the most glaring issues was the failure of 92 agencies to recover funds amounting to around 394 million Br identified in previous audit reports. Adequate documentation was provided for only 10pc of last year's five billion Birr outstanding. The Information Network Security Administration (INSA) stood out as the only federal agency that recovered nearly all of its outstanding amounts.

The Ministry of Innovation & Technology, led by Minister Belete Molla, was one of two federal agencies that captured Parliament's interest in performance audits. It took much of the blame for failing to recover 70pc of a total of over 363 million Br in collectables by the two agencies, including Wollo Tertiary Hospital. Its failures to complete projects on time — such as science cafes and digital transformation — resulted in public losses of 43 million Br and 277 million Br, respectively, disclosed the audit findings.

The Auditor General has exposed widespread inefficiencies within federal agencies, raising serious concerns about the management and accountability of public funds. She pressed for comprehensive reforms and stricter oversight to enhance financial governance and transparency in the public sector. Recounting a conversation with her predecessor, Gemechu Dubisso, the Auditor General stated the longstanding issues plaguing her office. Gemechu, who served as Auditor General for 12 years, confided that little was done to hold audit offenders accountable during his tenure.

"There is a lack of checks and balances in every step of the administrative ladder," he told Fortune.

Gemechu called for civil society, including professional associations and the media, to take a more active role in scrutinising audit findings and pressuring government agencies to address the identified shortcomings. The former Auditor General believes that such external pressure is essential for promoting a culture of accountability within the public sector.

Despite the austere economic climate, several agencies mismanaged their budgets.

"Some overspent while others kept the budget unused," Meseret told legislators.

Increased oversight by the Ministry of Finance led to the termination of three university presidents from Wolaita Sodo, Gambella, and Mizan-Tepi for fiscal mismanagement.

Over 100 agencies unexpended a staggering 19 billion Br, equivalent to what agriculture received under this year's budget. The Ministry of Finance contributed around eight billion Birr to the total unexpended amount.

"We've informed them to be careful in formulating their budget," she added.

The Auditor General's findings extended beyond financial imprudence.