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Audit Highlights NSPA's Allocation Oversight

26 January 2024, MVT 10:49
Hussain Niyaazi / Auditor General
26 January 2024, MVT 10:49

The National Social Protection Agency (NSPA) has been subject to examination in an audit report, which highlights an allocation of MVR 19 million to individuals classified as single mothers and those with disabilities, despite not meeting the eligibility criteria.

An audit completed in 2022 also emphasizes the need for the recovery of this additional expenditure, including MVR 11 million for financial assistance to single mothers and fathers, MVR 8 million for therapeutic aid to persons with disabilities, and MVR 200,000 for financial assistance to persons with disabilities.

The report highlights instances where funds were disbursed without proper verification or when the donor's conditions changed. Despite NSPA establishing a recovery unit, the audit notes that the recovery process faced challenges due to understaffing, with only one employee in the unit.

The mismanagement extends to allowances provided to married individuals erroneously identified as single parents, as revealed in the same audit. The report discloses that MVR 1 million was disbursed to 12 married persons until August of the previous year, who were not eligible for allowances meant for single mothers and fathers. The audit calls for corrective action, emphasizing the state's responsibility to recover misappropriated funds and take appropriate measures against negligent employees.

While NSPA had disbursed significant funds wrongly in 2015, 2016, and 2018, none of these funds had been recovered until August of the preceding year. The audit findings reinforce the importance of a better mechanism to verify eligibility and promptly update information on living conditions to prevent misallocation.

The Audit Office highlights that these funds are being continuously issued to ineligible persons due to a lack of coordination between concerned authorities, posing a delay in NSPA receiving updated information about recipients. Although recipients often fail to report changes in their circumstances as they are obliged to, the Audit Office states it is key for NSPA to independently verify information. They said that NSPA is unable to get this information at the required pace as information from the courts is not available on a singular platform.

As the government aims to enhance financial control over subsidies, the audit report emphasizes the need for strategic planning to ensure aid reaches those who truly need it.

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