An audit report presented to Parliament last week revealed financial irregularities at the Ethiopian Police University, including 86 million Br deposited into two accounts unauthorised by the Ministry of Finance (MoF).
The Public Expenditure Administration & Control Affairs demanded the closure of these accounts. The management of the University stated that they have already requested permission from MoF. The audit report disclosed that 136,000 Br was paid to senior management as per diem for trips that did not occur.
The University also faced scrutiny regarding its purchasing practices. Sixteen million Birr was spent on food through direct purchasing, violating regulations that mandate open tenders to ensure transparency and accountability. University president Mesfin Abebe claimed that prices could increase by as much as 50pc through tenders. This did not convince the MPs, who insisted that purchases should be made via open tenders and in bulk.
The University procured 38-million-Br worth of products from companies without competitive bids. This drew backlash from MPs who vehemently criticised the University officials saying it contradicts the purchasing regulations.
The MPs also questioned the University's purchase of two million Birr in vehicle tires through price comparison methodology at various intervals. Although Mesfin stated that the equipment was for emergency use, MPs argued that such purchases should have been approved by MoF and purchased in a planned bulk tender.
MPs stated that fuel might have been used for personal purposes pointing to the failure of the University to accurately track fuel usage for its vehicles and generators. Mesfin said that the exact amount of fuel for generators was not consistent due to unpredictable power outages. He claimed the University has a fuel quota for vehicles.
The University's practices were highly susceptible to corruption due to a lack of checks and balances, according to Tesfaye Shime, head of the anti-corruption department at Federal Ethics & Anti-Corruption Commission (FEACC). He said the audit report only examined samples and that a full audit would likely reveal even more serious problems.
Etagegn Mengeste, a representative from the Public Procurement & Property Authority (PPPA), criticised the University for “deliberately bypassing government purchasing procedures”.
Abaynesh Teshome, a representative from MoF, argued that the University officials responsible for the mismanagement should be brought before the law.
Parliament ordered the University to present audit reports to auditors and MoF every three months and to submit an action plan to the Public Expenditure Administration & Control Affairs Standing Committee within 15 days.
At the end of last month, the Ethiopian Immigration & Citizenship Service faced backlash from the same Committee during an audit report for similar mismanagement problems including collecting penalty fees without MoF's knowledge. The Service was found to be utilizing personal accounts to accept various penalties regarding passport applications.
Arare Mosisa, deputy head of the Committee, stated that these funds were supposed to be deposited to a MoF-approved account, and that the institution was not authorized to use those funds without the Ministry's permission.
Fitsum Getahun, an accounting expert, recommends MoF simplifying the process of opening accounts by public institutions. He argues that the Ministry should allow flexible procedures for institutions to easily collect incomes. He says the extended periods of time and complex procedures for getting approval from the Ministry may affect government institutions' ability to fulfill their operational obligations.
PUBLISHED ON
Dec 22,2024 [ VOL
25 , NO
1286]
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