The Malta Independent 16 April 2024, Tuesday
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NAO says Local Councils’ irregular procurement needs to be addressed immediately

Rebekah Cilia Monday, 26 November 2018, 19:01 Last update: about 6 years ago

The National Audit Office reiterated that the time has come for certain shortcomings related to Local Councils, such as procurement not in line with standing regulations needs to be addressed without further delay.

This was noted in the annual report on the working of Local Government for the year 2017, as presented to Speaker Anglu Farrugia.

Procurement shortcomings need to be addressed for Local Councils in their entirety to regain trust of the citizens, the NAO noted.

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Three Local Councils, namely Qrendi, St. Paul's Bay and Valletta, as well as the Gozo Regional Committee did not submit their financial statements on time to the NAO. All other 53 Local Councils and three Regional Committees submitted their statements on time.

As a result, the NAO reported that the Local Government Auditor was not in a position to express an audit opinion on the financial statements of these three Local Councils and the one Regional Committee.

A qualified audit opinion was issued on the financial statements of another thirty-nine Local Councils, two Regional Committees and the Local Councils Association, meaning that certain areas could not be audited because of restrictions beyond the Auditor's control.

Ten Local Councils registered a negative working capital, indicating that they will not be able to meet their financial obligations when they fall due.

These shortcomings, along with others which have been identified following an extensive review of the financial statements prepared by private Auditors for Local Councils, Regional Committees and the Local Councils Association, are presented in the audit report together with the Office's recommendations.

The NAO noted the continued efforts on the part of the Administration to ensure that Local Councils across Malta and Gozo are given the necessary support in their efforts to meet the various objectives and obligations


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