The motion to modify the financial rules of the Tobago House of Assembly was passed in a plenary sitting on Tuesday at the Assembly Legislature in Scarborough.
The motion allows the THA to update its financial rules so that they align with current procurement laws and financial legislation. The THA has been functioning under financial rules dating from 1990, resulting in much ambiguity in how public funds are accounted for.
A common complaint among contractors and service providers in Tobago is that the Tobago House of Assembly typically pays bills late.
Assistant Secretary in the Division of Finance, Trade and the Economy, Kern Alexis, explained that current financial rules make it difficult for public servants to sign off on invoices in a timely manner.
“When an officer is not sure the rules will protect them, the safe choice is to wait. And nobody has ever been disciplined for waiting.”
But how could a public servant not be sure of who should sign off on an invoice or other documentation to process payment? According to Finance Secretary Petal-Ann Roberts, the THA is currently operating under financial rules from 1990. These rules do not take into account changes to national procurement legislation, modern forms of conducting business or the increased financial responsibility granted under the THA Act 40 of 1996.
“The result of this was predictable. Differing interpretations across Divisions regarding the spending authorities and the approval limits. We had ongoing audit queries from the Auditor General due to the mismatched governance standards.”
Two attempts were made at modernising financial rules, under both the Hochoy Charles and Orville London administrations. In both cases, rules were submitted to Parliament but were not submitted to the President for approval.
Secretary Roberts said this administration is making another attempt. She explained that the rules will align with current procurement legislation, clarify the roles of accounting personnel, provide provisions for digitisation of processes and ensure transparency.
“The modified financial rules also establish clearer reporting lines and formats supporting timely financial statements and better responses to the Auditor General.”
Assistant Secretary Alexis shared that the rules streamline the process for payment.
“Every six months, outstanding arrears reports go to the Administrator of Finance and to the Auditor General within six weeks. Any arrears older than three months must be flagged together with what has been done to correct them.”
The rules protect public servants and allow them to note their conflicts and submit them to the Chief Secretary and the Auditor General.
Legal Affairs Secretary Adanna Joseph-Wallace noted there are also mechanisms for fraud reporting.
“Accountability and transparency are expected and do apply to public and contract officers alike.”
It is hoped that Parliament accepts these new rules and submits them to the President for approval. After that, it will be fully adopted by the THA and made available to the public.