Home | Databases | WorldLII | Search | Feedback Vanuatu Ombudsman's Reports

Alleged Unreasonable Delay by the Public Works and Finance Departments to Recover Debt from Union of Moderate Party [2004] VUOM 1; 2004.02 (22 January 2004)

REPUBLIC OF VANUATU
OFFICE OF THE OMBUDSMAN

PMB 081
Port Vila
Vanuatu

PUBLIC REPORT

ON THE

ALLEGED UNREASONABLE DELAY
BY THE PUBLIC WORKS
AND
FINANCE DEPARTMENTS
TO RECOVER DEBT FROM UNION OF MODERATE PARTY

22 January 2004

7034/2004/02

PUBLIC REPORT ON THE
ALLEGED UNREASONABLE DELAY BY THE PUBLIC WORKS AND FINANCE DEPARTMENTS TO RECOVER DEBT FROM UNION OF MODERATE PARTY

SUMMARY

Public Works and Finance Departments to recover the debt owed by Union of Moderate Party (UMP) to the government.

In 1996, during their annual congress at Atchin, Malekula, 3,800 litres of fuel (19 drums of petrol) was issued by the Department of Public Works to the Union of Moderate Party(UMP). Hon. Vohor as President of UMP advised the Public Works Department that UMP would replace those drums. The total invoice was VT255,322. The other outstanding debt of VT222,600 relates to hiring of G123 Toyota Dyna by UMP during their congress at Erakor in August 1996. The total debt stood at VT477,922. Because of the numerous exchange of correspondences between the Ombudsman and the respective government departments, this amount was reduced to VT302,922. To date, no other payments was made and the public Works and Finance Departments did not take serious action in recovering these debts fully.

The Ombudsman finds during his investigation that:

- Collection of UMP debts was delayed fro unjustified reason. The Finance and Public Works Departments did not recover these debts within reasonable time since these were dated back to 1996. The Finance Department kept advising that they would refer the matter to the Attorney General and they failed to do so. The "Debt Recovery Task Force" established by the government did not consider recovering these debts.

- Responsible officers in both the Public Works and Finance Departments may have breached Regulation 18(2)(d) and Regulation 19(2)(b) of the Vanuatu Financial Regulations as they have failed to ensure the prompt collection of revenue due to the government by UMP in full.

The Ombudsman recommends that:

- Public Works and Finance Departments review the matter and take tougher measures to recover this debt and other monies owing to the Republic of Vanuatu.

- In the event that these two Departments have concluded that tougher measures have already been taken, they refer the matter to the state Law Office as a civil debt for recovery action through the courts

TABLE OF CONTENTS

SUMMARY
1. JURISDICTION
2. PURPOSE, SCOPE OF INVESTIGATION AND METHODS USED
3. RELEVANT LAWS, REGULATIONS AND RULES
4. OUTLINE OF EVENTS
5. RESPONSES BY THOSE WITH FINDINGS AGAINST THEM
6. FINDINGS
7. RECOMMENDATIONS
8. INDEX OF APPENDICES

1. JURISDICTION

1.1 The Constitution and the Ombudsman Act allow me to look into the conduct of government, related bodies, and Leaders. This includes the Public Works and Finance Departments. I can also look into defects in laws or administrative practices, including the unreasonable delay by these departments to recover the debt owed the Government by the Union of Moderate Party.

2. PURPOSE, SCOPE OF INVESTIGATION AND METHODS USED

2.1 The purpose of this report is to present the Ombudsman’s findings as required by the Constitution and the Ombudsman’s Act.

2.2 The scope of this investigation is to establish the facts about the use of public property by the Union of Moderate Party and why the Finance and Public Works Departments have not fully recovered the debt owed by UMP to the Government. Although the two respective Government departments were fully aware of the Ombudsman’s investigation, no strict measure was taken to recover the debts.

2.3 This Office collects information and documents by informal request, summons, letters, interviews and research.

3. RELEVANT LAWS, REGULATIONS AND RULES

3.1 VANUATU FINANCIAL REGULATIONS

ACCOUNTING OFFICERS

Regulation 18 (2)(d)

The duties referred to in sub-section 1 above shall include, but not necessarily be limited to:

(d) ensuring the prompt collection of all revenue due to the department and to maintain a constant review of the charges for the various services performed.

ACCOUNTABLE OFFICERS

REGULATION 19(2)(b)

The duties referred to in (1) above shall include, but not be limited to:

(b) prompt collection, recording, banking and bringing to account of all revenues due to Government and any other public moneys accountable for by him.

4. OUTLINE OF EVENTS

4.1 The Ombudsman received a complaint against the Department of Public Works for issuing 3,800 litres of fuel to the Union of Moderate Party during their annual congress at Atchin, Malekula in 1996.

4.2 On 17 December 1996, Mr. Jeffrey Wilfred, former Director General of Finance Department advised the Ombudsman that he would follow up with the matter after he received information from the Public Works office at Lakatoro, Malekula. (See copy of his letter marked "A")

4.3 On 5 November 1997, Mr. Manasseh Tary wrote to the Ombudsman stating that he had instructed Mr. Ruru Gratiano to re-issue an invoice to the UMP office. (His letter is marked "B").

4.4 The Ombudsman received a letter from Mr. Jone Roqara on 10 December 1997 advising that the UMP have an outstanding debt of Vt477,922 for the fuel and hire of a PWD truck. (See documents marked "C").

4.5 On 2 February 1999, the Ombudsman wrote to Mr. Joylie Seresere requesting him information on what steps the Finance Department had taken to recover the outstanding debt by UMP.

4.6 The Ombudsman also wrote to Mr. Rialuth Serge Vohor about the outstanding debt owed by UMP. (See copy of the letter marked "D").

4.7 The Ombudsman sent another letter dated 4 March 1999 to Mr. Mark Bebe ("Mr. Bebe") regarding the same.

4.8 On 19 March a reminder letter was sent to Mr. Bebe. (See copy marked "E").

4.9 Mr. Bebe replied on 24 March 2003 stating that he would have to re-issue invoices as the matter has been left unattended to for a number of years. He also advised that he would formally ask the Attorney General of the possibility of instituting legal action against the UMP. Mr. Bebe’s letter is marked "F").

4.10 On 16 July 1999, the Ombudsman sent a reminder to Mr. Bebe to confirm if the UMP debts have been settled. (Copy of letter is marked "G").

4.11 On 12 August 1999, Mr. Bebe replied by saying the debts were still outstanding and that he would give a written report to the Attorney General after he received reports from the Public Works Department. (See copy marked "H").

4.12 Between November 1999 and May 2000 several reminders were sent to Mr. Bebe.

4.13 On 19 October 2000 Mr. Bebe instructed the Finance Chief Accountant and other managers that UMP will start paying some of its debts by installments. (See copy marked "I").

4.14 Correspondences for follow up were sent from 2001 to 26 September 2002 when Mr. Jimmy Andeng advised the Ombudsman that the outstanding amount yet to be recovered was Vt302,922 after contributions were received from some of the members. (See letter marked "J").

4.15 On 3 October 2002, letters were sent to Mr. Serge Vohor, Mr. Jacques Sese and Mr. George Andrews querying the recovering of UMP debts. (See copies marked "K").

4.16 On 7 March 2003 reminder letters were sent regarding the same.

4.17 Mr. Sese replied on 14 February 2003 saying that deductions were taken from UMP party members and Finance Department should be able to give a statement showing this. (See copy of letter marked "L").

4.18 On 10 March 2003, Mr. George Andrews wrote to the Ombudsman stating that they have established a "Debt Recovery Task Force" to look at ways of recovering debts owed to the Government. This exercise was to eventuate in April 2003. (See copy of letter marked "M").

5. RESPONSES BY THOSE WITH FINDINGS AGAINST THEM

5.1 Before starting this enquiry, the Ombudsman notified all people or bodies complained of and gave them the right to reply. Also, a working paper was provided prior to preparation of this public report to give the individuals mentioned in this report another opportunity to respond.

5.2 Responses were received from the following:

- Kalwajin Skepha, Acting Director, Public Works Department (PWD).
- Hon. Serge Rialuth Vohor, Deputy Prime Minister

Mr Skepha responded and stated that it is true that past UMP invoices have not been paid. He therefore delegated the responsibility to follow-up on this matter to Mr Vincent Wokon, Acting Manager Corporate Services/Senior Accountant of the PWD. Mr Wokon was to hold series of meeting with the current UMP President and other officials because it appeared that UMP officials have ignored the numerous documentation sent to them on this matter.

In another letter dated 8 October 2003, Mr Skepha stated that they have sent a letter to the former Minister of Education, Hon. Jacques Sese to find out from whom salaries should be deducted towards the debt. Please see Appendix N. [The Ombudsman has sent follow up letters on the matter to Mr Wokon but no response was received at the date of writing this report].

5.5 Hon. Vohor stated in his response that he has never given any verbal or written instruction to anyone concerning the expenses incurred. He denies the allegations stated in the working paper. See Appendix O.

6. FINDINGS

Finding 1: Collection of UMP debt was delayed for unjustified reasons

The Ombudsman found that both the Public Works and Finance Departments failed to collect the UMP debt within reasonable time. This unreasonable delay led to the outstanding of Vt302,922 yet to be recovered. UMP is one of the biggest political parties in Vanuatu and surely they would have a good financial base for their activities. The Finance Department kept advising that they would refer the matter to the Attorney General and they failed to do so.

Finding 2: Prima facie breach of Regulation18(2)(d) and Regulations 19(2)(b) of the Vanuatu Financial Regulations

6.2 Accounting and accountable officers in both the Public Works and Finance Departments have failed to ensure the prompt collection of revenue due to the Government pursuant to Regulations 18(2)(d) and 19(2)(b). It has taken more than 6 years for the Finance Department to fully recover all outstanding debts from the UMP and it is our understanding that the monies have not all been paid in full.

7. RECOMMENDATIONS

7.1 Finance Department and Public Works department to review this matter and take tougher measures to recover this debt and other monies owing to the Republic of Vanuatu.

7.2 Where the Department of Finance and Public works conclude that tougher measures have already taken place over the past six years it is recommended that they refer the matter to the state Law Office as a civil debt for recovery action through the courts.

Dated the 22nd day of January 2004.

Hannington G. ALATOA
OMBUDSMAN OF THE REPUBLIC OF VANUATU

8. INDEX OF APPENDICES

A Letter from Mr. Jeffrey Wilfred dated 17 December 1996.

B Letter from Mr. Manasseh Tary dated 5 November 1997.

C Letter from Mr. Jone Roqara dated 10 December 1997.

D Ombudsman’s letter to Mr. Vohor dated 2 February 1999.

E Remainder letter to Mr. Bebe dated 19 March 1999.

F Mr. Bebe’s letter dated 24 March 2003.

G Remainder letter to Mr. Bebe dated 16 July 1999.

H Letter from Mr. Bebe dated 12 August 1999.

I Letter from Mr. Bebe dated 19 October 2000.

J Letter from Mr. Jimmy Adeng dated 26 September 2002.

K Ombudsman’s letters to UMP executive dated 3 October 2002.

L Letter from Mr. Sese dated 14 February 2003.

M Letter from Mr. Andrews dated 10 March 2003.

N Letter from Kalwajin Skepha dated 08 October 2003

O Letter from Hon. Serge Vohor dated 09 July 2003