Imbert foregoes legal action against Auditor General, agrees to special report

FINANCE Minister Colm Imbert has decided to forego legal proceedings against Auditor General Jaiwantie Ramdass with respect to the latter's submission to Parliament of a report on the 2023 public financial accounts which did not factor in a $2.6 billion understatement in revenue.

The original report will be laid in Parliament at the earliest opportunity.

The Finance Ministry will provide Ramdass with all the documents she requires to prepare a special report on the 2023 public financial accounts by August 31.

This decision was relayed to Freedom Law Chambers, Ramdass' legal representative, in a letter dated May 15 from the law firm, MG Daly & Partners, which is representing Imbert.

The letter signed by attorney Jo-Anne Julien however rejects claims made by Freedom Law Chambers that government was attempting to coerce or undermine the Auditor General with respect to the preparation of her report for submission to Parliament.

There is no mention in the letter about Cabinet's appointment on May 7 of an independent team to investigate the $2.6 billion revenue understatement.

The letter is a response to an April 28 letter from Freedom Law Chambers to Imbert about what the firm described as circumstances surrounding attempts by public servants at the Finance Ministry and the office of the Comptroller of Accounts to alert Ramdass that errors were discovered in the public accounts after they were submitted to her on January 31.

Julien said, "It does not appear to be disputed that the Auditor General did not accept the relevant documentation pertaining to those errors until 15th April, 2024 and that she submitted her report to the Speaker of the House of Representatives and the President of the Senate on 24th April, 2024."

On the same day, she continued, the Auditor General delivered a management letter to the Finance Ministry.

Julien said one of the things Ramdass identified in this letter were certain errors in the accounts submitted to her by the ministry.

Ramdass requested explanations with respect to these errors and invited comments from the ministry on the findings, observations and recommendations.

Julien said the ministry fully appreciates the importance of the independent and constitutional role which the Auditor General plays in the annual verification of the public accounts and "is therefore desirous of satisfying all of the Auditor General's reasonable queries, concerns and criticisms of the public accounts."

She added this has always been the ministry's priority.

"It is therefore unfortunate that the ministry was not afforded the opportunity of responding to the management letter before the Auditor General's Report was submitted to the Speaker and the (Senate) President, but the minister notes the Auditor General's willingness, as expressed in your letter, to consider the preparation of a special report pursuant to section 25(4) of the Exchequer and Audit Act."

Julien said, "Accordingly, by separate correspondence and engagement, the ministry will be making all necessary and reasonable efforts to provide all documents which the Auditor General requires in so far as those documents exist and to allay all of the Auditor General's reasonable concerns."

The letter referred to public disquiet and stark differences of opinion about this issue and the need for Parliament and the public to be properly and accurately informed on revenue collected and payments made with respect to government operations.

Julien said, "It is expected that this special report on the public accounts for the financial year 2023 will be completed in the shortest possible time, and certainly by 31st August, 2024, which is the extended date for reporting on the accounts for financial year 2023."

She added that the April 28 letter from Freedom Law Chambers contained many false and misleading statements regarding the submission of accounts by the ministry to the Auditor General.

Julien sought to treat with these statements.

Delayed acceptance of amended accounts

On January 31, the Treasury Division submitted statements and accounts to the Auditor General, reflecting Trinidad and Tobago's financial position as at September 30, 2023.

After discovering there was a potential understatement of $2.6 billion and identifying the errors which caused it, the ministry amended the revenue statement and other accounts/statements included in the original collated public accounts that were affected by the understatement.

From April 9 to 15, Julien said the ministry experienced difficulties in submitting the amended public accounts to the Auditor General.

She added that on April 11, the Auditor General's department refused to accept the amended accounts but did take delivery of the original accounts that day.

She said "in the face of the Auditor General's refusal" to take delivery of the amended accounts, the minister sent those accounts via TTPost to the Auditor General's department on April 12 and they were delivered on April 15. The accounts included the Exchequer account and a statement of receipts and disbursements which were certified and dated April 8 and 5, respectively. She said a copy of a statement of declaration and certification dated January 31 included in the original Treasury accounts were inadvertently included in the April 12 accounts.

Julien said Ramdass wrote Attorney General Reginald Armour on April 15 saying the ministry was free to recall the public accounts it submitted to her on January 31 and provide her with revised public accounts.

Julien said the ministry wrote to Ramdass on April 16, recalling the original statements and provided the amended public accounts.

The amended accounts were accepted by Ramdass as replacing the public accounts previously submitted by the ministry.

Julien said a team from the Auditor General's department visited the offices of the Inland Revenue and Treasury divisions from April 17 to 19 to audit the amended public accounts.

Referring to Ramdass' acceptance of the amended public accounts on April 16, Julien said Freedom Law Chambers did not mention in its letter that before this date, Ramdass "repeatedly and steadfastly refused for almost a week" to accept delivery of the amended accounts, consider them or have any meaningful discussion with the ministry about them.

She said Ramdass only did so after receiving a pre-action protocol letter issued on behalf of Armour on April 15.

"The Auditor General's initial refusal to accept the amended public accounts delayed her consideration of those accounts for what was a significant period of time given the statutory deadline of 30th April, 2024 for the submission of her report ("the Auditor General's Report") to the minister, the Speaker of the House of Representatives and the President of the Senate under section 25(1) of the Exchequer and Audit Act."

Julien said Ramdass' actions, whether intentional or not, have raised concerns that the ministry was denied a reasonable and timely opportunity to correct or explain the error made in the original treasury statements and to verify the increase in revenue, resulting from the correction of this error before the Auditor General's report was submitted to the Speaker and Senate President.

"Moreover, the Auditor General's refusal to receive and consider the amended public accounts prior to the 15th April, 2024 was unlawful and irrational."

Julien said it was unlawful because it constituted a failure to fulfil her duties under Section 116 of the Constitution and Section 9 of the Exchequer and Audit Act.

"It was irrational because it is inexplicable that she would refuse to consider such amended accounts in the course of executing her duties to examine and audit the public accounts."

Allegation amended accounts backdated

Julien said this and similar allegations are patently false.

She said the claim that the accounts were intentionally backdated is "spurious as there is no factual basis for that allegation and indeed the allegation is inconsistent with the facts surrounding the submission of the 12th April accounts and the amended public accounts."

She reiterated January 31 declaration and certification included in the treasury statement were included in error in the April 12 accounts and that if it had been an attempt to backdate the document the Exchequer account and statement of receipts and disbursements would have been also dated January 31.

"But they were not."

$700m missing from ministry

Julien said the claim that the ministry was unable to account for over $700 million is false.

She added that this was accounted for in a memorandum dated March 28 from permanent secretary Suzette Lee Chee to Ramdass.

Julien said when the Auditor General's department team was auditing the amended public accounts, it raised no enquiry about this sum or suggested that it had not been accounted for.

Failure to provide records to prove increased revenue

Julien said this allegation is false on the basis of documents provided to the Auditor General's team on April 17.

"It is not true to say that the MOF was unable to produce any financial records to substantiate and verify this said sum. The said source documents do substantiate those changes."

Auditor General's report submission to Parliament

Julien said Freedom Law Chambers did not mention that when Ramdass submitted her report on the 2023 public accounts to Parliament, she sent a management letter to the ministry about the errors in those accounts.

She said it is the practice of the Auditor General's office to hold an exit interview with the ministry's staff to address any concerns with respect to the public accounts before the Auditor General's report is submitted to Parliament.

She said there was no "good reason" why after issuing the management letter the Auditor General could not have delayed the submission of the report to Parliament until April 30 to give the ministry time to consider and respond to the matters she raised.

Alleged refusal to lay report

Julien said Imbert is required by the Exchequer and Audit Act to lay the Auditor General's report in Parliament within 30 days of receiving it and "he will do so in due time, despite the legal flaws just identified."

She cited Section 116(5) of the Constitution, House standing order 22 (2) and Senate standing order 21 (4) rejects the claim from Freedom Law Chambers that Imbert was under a statutory duty or required by law to lay the report in Parliament on April 26.

Reviewing amended accounts

Julien dismissed the claim that Ramdass could not review the amended accounts after the original accounts were submitted to her on January 31, as the ministry met the deadline in submitting the original treasury statements. "It was the Auditor General's statutory duty under section 25(1) of the (Exchequer and Audit) Act to examine and audit those accounts."

Govt coercion of Auditor General

Julien said the government and the ministry never asked the Auditor General change her report. She reiterated the only thing the ministry did was to ensure that Ramdass based her report on accounts and financial information that are accurate.

The way forward

Julien reiterated Imbert's intention to lay the original Auditor General's 2023 report in Parliament within 30 days of receipt of it, at the next sitting of the House that is closest to that date.

She also said given Ramdass' willingness to consider the preparation of a special report on the 2023 public finances for submission to Parliament, it is expected that such a report will be submitted by Ramdass to Parliament and Imbert "no later than August 31."

Julien said a response from the ministry to Ramdass' management letter along with a request for a special report to be compiled will be sent to her.