Africa-Press – Cape verde. The Court of Auditors, as in previous years, recognizes in the CGE the material absence of the legally required maps in light of the LEO, which “delimits the in-depth pronouncement on compliance with all legal requirements relating to Treasury Operations”.
To this end, it recommends the Minister of Finance to promote the development and implementation of forecast tables for Treasury Operations and Treasury Accounts, with the determination of the respective balances, in accordance with the legislation in force.
In 2019, according to the opinion, both budget revenue and expenditure recorded increases of 15.1% and 13.6%, respectively, compared to the previous year.
With regard to revenues, these increases are due to increases in taxes, current donations and other revenues. And on the expenditure side, the recorded aggravations are justified, mainly, by
the increases in other expenses (originated mainly by the costs of restructuring the TACV), social benefits, personnel expenses and the acquisition of goods and services.
“As in the previous year, in 2019, the State found itself in a debtor position with the entities receiving the withholdings, highlighting the large debt with the INPS, resulting from the TSU withholdings, in the amount of CVE 275,608,417 which, in the year in question, recorded a decrease of 13.9% compared to the previous year”, he reveals.
General State Account does not include Social Security accounts
The Social Security sector, according to the opinion of the Court of Auditors on the 2019 State General Account, “lacks specific accounting standards and principles, so that the impositions arising from the LEO, which foresees integrating the Social Security budget into the budget, can be fully complied with. OE”.
“It has been recurrent for the CGE not to integrate the Social Security Account, presenting only the Map III-14 – Social Security Balance of the CGE, which is not in accordance with articles 3, 18, 31, 32 and 34 of the LEO that provide for the establishment of the Social Security Account and Balance Sheet”, he emphasizes.
According to the opinion, in 2019, the volume of financial investment carried out by the INPS amounted to CVE 81,920,229.0, compared to that carried out in 2018 which reached CVE 68,123,053.0, that is, an increase of 20.3%.
According to the same source, the financial investments of the INPS are essentially constituted by Treasury Bonds, Demand Deposit and Time Deposit, in the amounts of CVE 25,602,438.0 (weight of 31.3%), of 25,006. 181.0 CVE (30.5%) and 16,674,254.0 (20.4%), respectively, overall.
The TCMF, previously belonging to the BCA and passed to the INPS, registered an exponential increase of 1,960.3%, that is, from 388,168 CVE in 2018 to 6,761,338 CVE in 2019. The TdC also highlights that the INPS, in 2019, diversified the financial investment portfolio, amounting to PTE 198 thousand, representing 0.02% of the share capital of AFREXIMBANK.
The opinion points, however, to the fact that the INPS is presenting tables/tables, both in the Plan of Activities and Budget and in the management report, with headings in formats, “which make it difficult for users to understand this financial information” .
PAICV and MpD with different readings
The two main parties, each in their own way, and according to their interests, try to take political advantage of the opinion of the Court of Auditors (TdC) on the General State Account for 2019.
The PAICV says that the aforementioned opinion points out “errors, irregularities and discrepancies” in the management of public resources for the year 2019.
António Fernandes, deputy and national councilor of the PAICV, said, in a press conference, that the opinion of the TdC indicates that there is a violation of several provisions of the Budgetary Framework Law (LEO), namely the principles of unity and universality and highlights a set of other irregularities, such as revenue collection and expenditure outside the budget perimeter.
Faced with these situations of alleged irregularities, the PAICV appeals to parliamentarians to send this account to the Public Prosecutor’s Office for clarification of the management of public money.
In turn, the secretary general of the MpD described the interpretation and denunciation of the PAICV as “false and irresponsible”. Luís Carlos Silva said, also at a press conference, that the largest opposition party had “definitely” decided to assume the position of “unpatriotic”, when Cape Verde “probably” is experiencing the
“highest moment” of international projection in its history.
Regarding the alleged irregularities, the SG of the party that supports the Government says that the PAICV is unable to point to “a single case”.
Silva considers that the 2019 accounts were judged within a “normality” framework and that regarding “errors and emissions”, the PAICV knows that this results from a limitation of the classifiers law, that is, some expenses and revenues do not achieve the framework within the current classifiers and are
framed as “errors and omissions”.
Regarding the PAICV’s appeal to send the opinion to the Public Prosecutor’s Office, Luís Carlos Silva clarifies that, under the law, the TdC has the power to forward any illegality, irregularity and/or evidence to the Attorney General’s Office.
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