THE Comptroller and Auditor-General’s (OCAG) Office is currently doing a remuneration audit for all State enterprises, parastatals and local authorities as it moves in to stem the rot at the entities.
This comes amid revelations that executives at parastatals and State enterprises were paying themselves mega salaries and allowances while their entities are making losses and failing on service delivery.
The audit would be complete by month end.
An official at the Auditor-General’s Office yesterday told NewsDay that the audit was being done in response to a directive by Cabinet following reports on salaries that were being paid to executives.
“We are indeed carrying out a remuneration audit on some of the parastatals and State enterprises and some have been subcontracted to private audit firms which are responsible for the audit of their year-end financial statements. We anticipate to have the exercise completed towards the end of this month,” the official said.
The audit is, however, being carried out by both the OCAG and private auditors as the government agency has no capacity to audit all parastatals and State enterprises within a short space of time.
Sources from parastatals said the audit also involves head counts at all parastatals in the country.
“We were told to come with our certificates and to confirm the dates that we started working and our salaries. The process is ongoing,” the source said.
The source said the audit would look at remuneration, payroll, board fees, statutory deductions and recruitment procedures.
The country has 78 parastatals and many local authorities which are saddled with rampant corruption.
Corporate governance at a number of State enterprises and parastatals is alien amid allegations that line ministers were running the show.
Early this year, government proposed that all parastatal chief executive officers be paid $6 000 as a temporary measure as government reviewed the salary structures amid revelations that some were earning over $40 000 in salaries and allowances.