REPORT OF THE AUDITOR-GENERAL - General … the National Postal Address...i Promoting Transparency,...

On the National Postal Address System (NAPAS) Project of the Ministry of Posts and Telecommunications Winsley S. Nanka, CPA, CFE Acting Auditor-General, R.L.

REPORT OF THE AUDITOR-GENERAL

i Promoting Transparency, Accountabil ity, Integrity and Fiscal Probity

Office of the Auditor-General Republic of Liberia

20 JULY 2012 TRANSMITTAL LETTER REPORT OF THE AUDITOR-GENERAL ON THE NATIONAL POSTAL ADDRESS SYSTEM (NAPAS) FOR THE OPERATING PERIOD 20 NOVEMBER 2009 THROUGH 30 JUNE 2011. 1. I am pleased to issue this report, which is the first Special Forensic Audit I commissioned

on the two Global Accounts of the National Postal Address System (NAPAS) Project operated and managed by the Ministry of Posts and Telecommunications.

2. The audit covered the period 20 November 2009 through 30 June 2011. It dealt with

support to the Ministry of Posts and Telecommunications by the Government of Liberia and donors for the purpose of undertaking a National Postal Address System.

3. The National Postal Address System Project was conceived to work out a plan to improve

courier delivery system in Liberia. The implementation of the system was to ensure a house-to-house mail delivery throughout Liberia. The National Postal Address System’s mandate is expected to elapse in five (5) years at which time an efficient and reliable door-to-door mail delivery service is to be implemented.

4. On 20 November 2009, a donor conference was held at the Monrovia City Hall to raise and

solicit funds for the National Postal Address System. At that conference, the amounts of US$10,155.00 and L$2,700.00 were raised in cash and financial pledges of US$51,750.00 and L$1,000.00 were made respectively. Of the total amount of pledges, US$25,050.00 has been collected leaving uncollected pledges of US$26,700.00 and LD$1,000.00.

5. For the period under examination, the National Postal Address System (NAPAS) Project for

which the two Global Accounts were established and operated was a one-man operation headed by Mr. Numene T. H. Barthekwa. I observed that the Project Director of NAPAS, Mr. Numene Barthekwa, was not competitively recruited. He was selected by the then Acting Minister/Chairman of NAPAS Steering Committee, Mr. Peter N. Ben under the guise that Mr. Yini-Guva Sahn, one of the interviewees who was competitively selected to occupy the position could not come to Liberia in time.

6. A review of audit documents submitted by NAPAS revealed that taxes in the tune of

US$2,663.59 were not deducted from the Project Director Mr. Numene T.H. Barthekwa’s salaries and allowances for the months of November 2010 to June 2011. The failure to

i i Promoting Transparency, Accountabil ity, Integrity and Fiscal Probity

withhold income tax by the Minister and Comptroller of the Ministry of Posts and Telecommunications was not in compliance with Section 905 of the Revenue Code of 2000. In response to my communication to Minister Norkeh on 9 July 2012, he indicated that he wrote Mr. Numene Bartekwa on 19 July 2012 to make payment of the income tax he and the comptroller failed to deduct from Mr. Bartekwa’s salary. He claimed that he was not the Minister of Posts and Telecommunications when the transactions occurred.

7. However, a review of the salary payment records revealed that he signed all the checks

related to the payments. While the effort to contact Mr. Bartekwa to pay the unpaid taxes to the Government of Liberia is acknowledged, it does not preclude Minister Norkeh and the Comptroller of their responsibilities to pay the taxes. Therefore, I have recommended that Dr. Frederick Norkeh and Comptroller Henry S. Shaffa pay to the Ministry of Finance the unpaid taxes.

8. It was observed that the NAPAS Project did not have financial policies governing its

operation. There was no established institutional standards and framework for the recruitment of staff of NAPAS and the disbursement of salaries and allowances.

9. I have made a number of recommendations as a result of my observations and have

included the responses of the key individuals associated with NAPAS. I have recommended that a financial policy and internal control procedure be put in place and adhered to so as to ensure accountability and transparency in the disbursement of NAPAS’ funds and NAPAS’ accounts be frozen until the full commencement of the project.

10. Overall, both financial and administrative activities undertaken by NAPAS’ Management at

the Ministry of Posts and Telecommunications during the periods under review were characterized by a number of financial irregularities and major control deficiencies including failure to withhold income tax from the Director of NAPAS. The total irregularities noted amounted to US$2,663.59.

11. Her Excellency, the President of the Republic of Liberia, the Speaker, House of

Representatives and the President Pro-Tempore of the Senate, the above issues are symptomatic of others noted in this report. Because of their impact on the National Postal Address System, I advise that their resolution be considered urgently.

i i i Promoting Transparency, Accountabil ity, Integrity and Fiscal Probity

Winsley S. Nanka, CPA, CFE Acting Auditor General, R.L.

Her Excellency The President of the Republic of Liberia The Executive Mansion The Hon. Speaker The House of Representatives Republic of Liberia President Pro-Tempore of the Senate The House of Senate Republic of Liberia

Report of the Auditor General On the National Postal Address System (NAPAS) Project of the Ministry of Posts and Telecommunications

2 Promoting Transparency, Accountability , Integrity and Fiscal Probity

Table of Contents ACRONYMS …………………………………………………………………………………………………………………………..3

Executive Summary………………………………………………………………………………………………………………..4

Background……………………………………………………………………………………………………………………………6

Audit Scope……………………………………………………………………………………………………………………………6

Audit Methodology………………………………………………………………………………………………………………….7

Audit Objectives……………………………………………………………………………………………………………………..7

Interview and Written statements of Stake-holders on the formation, operations and management

of NAPAS……………………………………………………………………………………………………………………………….8

DETAILED FINDINGS…………………………………………………………………………………………………….………11

Lack of Established Institutional Standards for Staff Recruitment and Financial Policies……….………11

Donors Support to NAPAS……………………………………………………………………………………………………..12

Bank Statements Analysis………………………………………………………………………………………………………12

Statement of Accountability……………………………………………………………………………………………………14

Acknowledgement…………………………………………………………………………………………………………………15

EXHIBITS…………………………………………………………………………………………………………………………….20



ACRONYMS ACRONYMS MEANING CBL Central Bank of Liberia CSA Civil Service Agency GAC General Auditing Commission GOL Government of Liberia MOPT Ministry of Posts and Telecommunications NAPAS National Postal Address System RL Republic of Liberia UPU Universal Postal Union



Executive Summary 1. In accordance with the provision of Chapter 53 of the Executive Law of 1972, on 24 June 2011,

I commissioned a Special Forensic Audit on the two Global Accounts of the National Postal Address System (NAPAS), a Project operated and managed by the Ministry of Posts and Telecommunications.

2. The audit covered the period 20 November 2009 through 30 June 2011. It concentrated on

support to the Ministry of Posts and Telecommunications by the Government of Liberia and Donor Institutions for the purpose of undertaking a National Postal Address System coupled with deposits and withdrawals made from the two Global Accounts (LD A/C #01-206-3000-2901 & USD A/C #02-206-3000-2901) of the National Postal Address System.

3. The objectives of the audit were to obtain assurance that: • Adequate internal controls were put in place to protect public resources from fraud,

waste, and abuse.

• NAPAS staff were recruited through a competitive process in keeping with standing policy of the Civil Service Agency.

• All monies deposited into the two global accounts were tracked and properly accounted

for as a means of ensuring that withdrawals and expenditures made were in compliance with internal control measures as specified by the PFM Law.

4. I conducted the special forensic audit in accordance with International Standards on Auditing

(ISA) and International Standards of Supreme Audit Institution (hereafter ISSAI) fraud guidelines. These standards require that I plan and perform the audit to obtain reasonable assurance that the financial statements and related records are free of material misstatements either due to errors or fraud.

5. The Special Forensic Audit mainly concentrated on:

• The number of employees on the personnel listing of the National Postal Address System (NAPAS).

• Monies disbursed as compensation from the two global accounts of NAPAS.

• Recruitment process for the staff of NAPAS.

• Bank transactions and expenditure of NAPAS.

6. During the conduct of the audit, I performed the following:

• Reviewed, analyzed and examined records regarding personnel listing, payroll and bank statements of the two global accounts of NAPAS at the CBL.



• Reviewed recruitment procedures on employment to ensure that the process was consistent with the CSA Standing Orders and the PPC Act of 2005 and amended in 2010.

• Conducted interviews with key officials of the Ministry of Posts and Telecommunications

to underscore the operational procedure of NAPAS. 7. It was observed that there was no established institutional standards and framework for the

recruitment of its staff and the disbursement of salaries to the lone staff, Mr. Numene T.H. Bartekwa. The NAPAS Project did not have financial policies governing its operation. There was no established institutional framework for the disbursement of salary to Mr. Numene T. H. Bartekwa as Project Director. There was no evidence that income and other statutory tax regimes were fully adhered to in the payment of monthly salary compensation.

8. On 20 November 2009, a donor conference was held at the Monrovia City Hall to raise and

solicit funds for the National Postal Address System. At that conference, the amounts of US$10,155.00 and L$2,700.00 were raised in cash. Financial pledges amounted to US$51,570.00 and L$1,000.00 respectively.

9. I have made a number of recommendations as a result of my observations and have included

the responses of the key individuals associated with NAPAS. I have recommended that a financial policy and internal control procedure be put in place and adhered to so as to ensure accountability and transparency in the disbursement of its funds and that NAPAS’ accounts be frozen until the full composition of NAPAS is constituted for the implementation stages of the project. In this vein, salary and allowance for the Project Director be withheld until the project commences.

10. The matters raised in this report are only those which came to my attention during the course

of my review of NAPAS’ operation and its related records at the Ministry of Post and Telecommunications.



Background 11. On 24 June 2011, I commissioned a Special Forensic Audit on the two Global Accounts of the

National Postal Address System (NAPAS) Project operated and managed by the Ministry of Posts and Telecommunications.

12. The audit covered the period 20 November 2009 through 30 June 2011. It dealt with support

to the Ministry of Posts and Telecommunications by the Government of Liberia and Donor Institutions for the purpose of undertaking a National Postal Address System coupled with deposits and withdrawals made from the two Global Accounts (LD A/C #01-206-3000-2901 & USD A/C #02-206-3000-2901) of the National Postal Address System.

13. The National Postal Address System Project was conceived to work out a plan to improve courier delivery system in Liberia. The implementation of the system was to ensure house-to-house mail delivery. The National Postal Address System’s mandate is expected to elapse in five (5) years at which time an efficient and reliable door-to-door mail delivery service will be implemented.

14. The National Postal Address System (NAPAS) Project for which the two global accounts were

established and operated was a one-man staff entity headed and managed by Mr. Numene T. H. Barthekwa. Ref. table-1 below:

Table 1: Global Accounts Operated by NAPAS

Bank Account Number

Account Type

Signatory Signatory Category

Central Bank of Liberia

02-206-3000-2901 United State Dollars Arthur W. B. Fumbah A Signatory

Dobah Varpuah A Signatory

Peter Ben Dr. Frederick Norkeh

Alternate A Signatory

Central Bank of Liberia

01-206-3000-2901 Liberian Dollars

Elijah Karnley B Signatory Walter S. McCarthy Alternate B

Signatory

15. As part of the audit procedure, I obtained the bank statements of the two global accounts from the Central Bank of Liberia for the period under audit and noted deposits totaling US$43,600.00 and L$2,500.00. The total withdrawals including bank charges amounted to US$18,715.50 and L$252.00. Ref. Schedule 1. Analysis and examination of the bank statements revealed ending balance of US$24,884.50 and L$2,248.00 respectively.

Audit Scope 16. The audit covered the operational period 20 November 2009 through 30 June 2011. It included

the analysis of personnel listing, payroll records, bank transactions and examination of expenditure records.



17. I conducted the special forensic audit in accordance with the International Standards on

Auditing (ISA) and International Standards of Supreme Audit Institution (hereafter ISSAI) fraud guidelines. These standards require that I plan and perform the audit to obtain assurance that the financial statements are free of material misstatements either due to errors or fraud.

18. The Special Forensic Audit was mainly concentrated on:

• The number of employees on the personnel listing of the National Postal Address System (NAPAS).

• Monies disbursed as compensation from the two global accounts of NAPAS.

• Recruitment process for its staff.

• Bank transactions and expenditure of NAPAS.

Audit Methodology 19. During the conduct of the audit, I performed the following:

• Reviewed, analyzed and examined records regarding personnel listing, payroll and bank

statements of the two global accounts of NAPAS at the CBL.

• Reviewed recruitment procedures on employment to ensure that the process followed was consistent with the CSA procedures and other standing regulations on civil servants employment.

• Conducted interviews with key officials of the Ministry of Posts and Telecommunications to underscore the operational procedure of NAPAS.

Audit Objectives 20. The objectives of the audit were to obtain assurance that:

• Adequate internal controls were put in place to protect public resources from fraud,

waste, and abuse.

• Staffs of NAPAS receiving GoL salaries were recruited through a competitive process in keeping with standing policy of the Civil Service Agency.

• All monies deposited into the two global accounts were tracked and properly accounted

for as a means of ensuring that withdrawals and expenditures made were in compliance with internal control measures as specified by the PFM Law.



Interview and Written statements of Stake-holders on the formation, operations and management of NAPAS

Numene T.H. Bartekwa, (Former Director NAPAS) 21. On 10 August 2011, I met with Numene T.H. Bartekwa, Project Director, National Postal

Address System, at the Ministry of Posts and Telecommunications. Mr. Bartekwa informed me that when he took over the affairs of the National Postal Address System, he proposed the establishment of a governing financial policy for the project.

22. Project Director Bartekwa also informed me that he does not know whether donations or

revenue were generated during the donors conference as he was not in the employ of NAPAS at the time of the conference in November 2009.

23. Mr. Bartekwa asserted that he was in Maryland County when his relative contacted him about

the vacancy of Project Director of NAPAS at the Ministry of Posts and Telecommunications. The Project Director intimated that he hurriedly came down to Monrovia, applied for the position, and was later called upon for interview and was selected.

24. Prior to his appointment as Project Director of NAPAS, Mr. Bartekwa told me that he worked at

the Ministry of Posts and Telecommunications for thirteen (13) years after which time he was pensioned. Project Director Bartekwa stated that though he is a pensioner but was not receiving pension benefit.

Mr. Edw in S. Kumon, Assistant M inister for Planning, Research and Statistics and Chairman of NAPAS’ vetting committee 25. On 12 August 2011, I met with Mr. Kumon at the Ministry of Posts and Telecommunications,

there he informed me about the vacancy been advertised for the position of Project Director of NAPAS published in the print media. He, however, failed to name the print media.

26. Mr. Kumon further stated that the Vetting Committee of which he was a part received

application from ten (10) persons and short listed five (5) persons. At the end of the first interview process, two applicants were qualified to sit for the second and final round of the interview.

27. Mr. Kumon intimated to me that while the vetting Committee was preparing for their

interview, the Minister was advised by the Universal Postal Union (UPU) through its Consultant, Guenter Boehm that the Project Director should be someone with basic postal knowledge, experience and be available before 5 November 2010.

28. Mr. Kumon intimated that Consultant informed Minister Sulunteh that the selected Project

Director of NAPAS will be invited to attend UPU Addressing Conference in Berne, Switzerland which was scheduled for early November 2010. Predicated upon the standards as set by the UPU, Mr. Guva Sahn (based in the USA) who was among the interviewees with basic postal knowledge and qualified credentials was finally tipped to occupy the position according to Mr. Kumon.



29. He however said due to the inability of Guva Sahn to depart the USA and reach to Liberia within the given timeframe set, it was necessary that the Vetting Committee found an alternative so as to meet the UPU deadline and protect the interest of the Ministry.

30. In view of the aforesaid, the Vetting Committee was able to get in touch with Minister Jeremiah

C. Sulunteh who advised them to get Mr. Numene Bartekwa, a former employee who had been pensioned. Contingent upon Minister Sulunteh’s advice, in early October 2010, Mr. Bartekwa who was then in Maryland County on some family matter was contacted through his son to come and report to the Ministry for a meeting.

31. Immediately upon his arrival from Maryland County, Mr. Bartekwa said he reported to the

Ministry and met with Mr. Kumon, Chairman of the Vetting Committee, who told him to apply for the Position of Project Director of NAPAS.

32. Mr. Kumon intimated that Mr. Numene T. H. Bartekwa applied for the post and forwarded all

his credentials to the Committee. He claimed that on Friday, 15 October 2010, due to the urgency attached to the appointment of the Director, Mr. Bartekwa was interviewed by two (2) members of the Committee. In order to augment the strength of the panel to vet Mr. Numene Bartekwa, the newly appointed Deputy Minister for Operations was requested to sit on the panel.

33. After the interview, the Minister was informed by the Vetting Committee that Mr. Bartekwa was

declared the preferred candidate.

34. Mr. Kumon concluded by informing me that he had no idea on NAPAS Financial transactions during and after the conference.

Mr. Soko V. Sackor, Former Deputy Minister Written Statement 35. On 17 August 2011, Mr. Sackor submitted a written communication which states;” I am

pleased to extend my compliments and to acknowledge with thanks receipt of your communication of August 11,2011 in which you informed me of the commissioning of a Special Forensic Audit on the Global Account of the National Postal Address System (NPAS) Project at the Central Bank of Liberia for the period covering 20 November to 30 June, by which you have requested that I respond to a set of questionnaire attached to this communication on the subject.

36. As former Deputy for Operations at the Ministry of Posts and Telecommunications, and having conceived the vision for the establishment of a unique Postal Address System for Liberia which was approved by the Government, our the first priority was to establish systems and procedures that would be accountable to Liberian People by opening accounts with the Central Bank of Liberia.

37. We requested for the issuance of a Signature Cards which process started but was never completed neither was the account accessed or used until I got a transfer to the Ministry of



Internal Affairs. In short, I never deposited or withdrew any funds from the account in question.”

Yini-Guva A. Sahn, Original Selected Candidate 38. I was chosen after two lengthy interviews to serve as the Director for the National Postal

Address System. It was a perfect opportunity for me because the position was in my area. Unfortunately, I couldn’t come because we didn’t come to one conclusion concerning my return.

39. I had worked In Liberia for 18 months with pay, on extra without pay, waiting for the initial results of interview I ran out of money and had to leave. I asked the ministry to arrange my travel by assisting with at least a thousand dollars. I was told that I was asking for too much. While discussing my travel, the next thing I heard was that a local candidate had been selected. I was unemployed and had just returned from Liberia when this happened. I didn’t refuse to take the position.

40. I was part of the initial planning process of NAPAS in Liberia. We worked on the budget and even had a fund raising program at the City Hall. I thought it was missed opportunity because the ministry would have benefited from my expertise just as it did in the case of the Track and Trace System that I help established from SCRATCH admist hurdles.



DETAILED FINDINGS Lack of Established Institutional Standards for Staff Recruitment and Financial Policies 41. It was observed that there was no established institutional standards and framework for the

recruitment of staff of NAPAS and the disbursement of salaries to its lone staff, Mr. Numene T. H. Bartekwa. The NAPAS Project did not have financial policies governing its operation. There was no established institutional framework for the disbursement of salaries to Mr. Numene T. H. Bartekwa as Project Director. There was no evidence that income and other statutory tax regimes were fully adhered to in the payment of monthly salary compensation.

42. The National Postal Address System project had only one employee, Mr. Numene T.H.

Barthekwa, as Project Director. 43. I observed that the Project Director, Mr. Numene Barthekwa, who was the only staff at NAPAS

was not competitively recruited. He was selected by the then Acting Minister/Chairman of NAPAS Steering Committee Mr. Peter N. Ben instead of Mr. Yini-Guva Sahn, one of the interviewees who met the qualification and was tipped to occupy the position.

44. Those vetted and short listed for the position of Project Director were: Ref. Exhibit 1.

• Matthew K. Flomo Gorveaboe • James W. Sarsh • Yini-Guva A. Sahn • Mozart A. Chesson • Robert W. Jarleh

45. Mr. Edwin S. Kumon, Assistant Minister of Posts and Telecommunications for Planning, Research and Statistics, informed me that Mr. Guva A. Sahn, who was preferred for the assignment was out of the country and had to be replaced by Mr. Numene Barthekwa due to the urgency to have the position filled before 5 November 2010.

46. Mr. Barthekwa presented to me an application that was purportedly submitted to the vetting

committee for the position of Project Director. As observed, the letter of application had no date. I cannot verify whether the letter was written before or after the vetting exercise. Ref. Exhibit 2.

47. A review of audit documents submitted by NAPAS revealed that taxes in the tune of

US$2,663.59 were not deducted from the Project Director’s salaries and allowances for the months of November 2010 to June 2011. The failure to withhold income tax by the authorities of the Ministry of Post and Telecommunications was not in compliance with Section 905 of the Revenue Code of 2000.



Table 2: Salary disbursements made to Project Director Numene Bartekwa for the month of July 2011. Ref. Exhibit 3.

Month Description Position Amt. US$ Income-Tax Net Pay July 2011 Salary & Allowance Project Director 1,850.00 267.52 1,582.00 48. From the chart above, tax was only deducted from the salary and allowance of Mr. Barthekwa

for the month of July 2011 in the amount US$267.52.

49. The review of cash payment vouchers revealed that those vouchers were not pre-numbered as required by best financial practice but cash payment vouchers numbers were handwritten. Ref. Exhibit 4.

50. When cash or check payment vouchers in use are not pre-numbered, this could increase the

likelihood of unauthorized transactions and embezzlements. Besides, it could make it difficult and impossible to account for the sequence of transactions.

Donors Support to NAPAS 51. On 20 November 2009, a donor conference was held at the Monrovia City Hall to raise and

solicit funds for the National Postal Address System. At that conference, the amounts of US$10,155.00 and L$2,700.00 were raised in cash. Financial pledges amounted to US$51,570.00 and L$1,000.00. Of this amount, a total of US$25,050.00 was collected from pledges made during the conference thus leaving uncollected pledges of US$26,700.00 and L$1,000.00. Ref. Schedule 2.

52. A Technical Committee’s follow-up team, chaired by Mr. Paul M. Richards, was established and

empowered to collect the financial pledges made in support of the NAPAS Project. However, there was no evidence that the committee ever fully implemented its mandate as evidenced by the US$26,700.00 and L$1,000.00 of uncollected pledges.

Bank Statements Analysis 53. For the periods under review, NAPAS managed two separate bank accounts at the CBL.

Account Number 02-206-3000-2901 in United States Dollars, while Account Number 01-206-3000-2901 in Liberian Dollars. As noted, GoL and some donors supported the implementation of NAPAS and made deposits into the two accounts, namely the USD and LD Global Accounts of the National Postal Address System (NAPAS).

54. During the analysis of the two Bank accounts held at the CBL, I observed that the total

deposits amounted to US$43,600.00 and L$2,500.00, while the total withdrawals amounted to US$18,682.00 and bank charges amounted to US$33.50 and L$252.00.

55. An analysis made of NAPAS’ books and the Bank Statement revealed that of the total of

US$18,682.00 withdrawn from NAPAS’ account, US$12,082.00 was paid to Mr. Numene T.H. Bartekwa as salaries for eight (8) months, thus leaving a balance of US$6,600.00. A detailed review of the document received from the Central Bank of Liberia and the National Elections Commission established that the US$6,600.00 variance was due to wrong posting by a teller of



the CBL of NEC’s deposit to wrongly made to NAPAS’s account which has since been corrected by the CBL. Ref. schedule 1.

Recommendation 56. Dr. Frederick Norkeh, Minister and Chairman, NAPAS Steering Committee and Mr. Henry S.

Shaffa, Comptroller of the Ministry of Posts and Telecommunication should be made to jointly and severally pay to the Ministry of Finance US$2,663.59 representing unpaid taxes on eight (8) months salaries and allowances of US$12,082.00 which was not deducted from Mr. Numene Barthekwa, Project Director of NAPAS by Dr. Norkeh and Mr. Shaffa.

57. The Minister Norkeh should ensure that the full organizational structure for NAPAS is adhered

to by filling vacancies in keeping with approved organizational chart. 58. A financial policy and internal control procedure be put in place and adhered to so as to ensure

accountability and transparency in the disbursement of NAPAS’ funds. 59. NAPAS’ accounts be frozen until the full composition of its staff is constituted for the

implementation stages of the project. In this vein, salary and allowance for the Project Director be put on hold until the project commences.

60. Former Acting Minister/Chairman of NAPAS Steering Committee, Mr. Peter N. Ben, provides

material justification and substantive authority to back his action for appointing Mr. Numene Barthekwa as Project Director of NAPAS, when there was no evidence that Mr. Numene Barthekwa was recruited competitively.

61. Mr. Peter N. Ben be reprimanded for appointing Mr. Numene Barthekwa as Project Director of

NAPAS in violation of PCC Act Sections 47 (1)(2) & (3)(a)(b) and 48 (1) (2). 62. The Paul M. Richards Committee should make every effort to ensure that the US$26,700.00

and L$1,000.00 of unpaid pledges are collected and deposited in NAPAS’ account.

63. That all vouchers should be pre-numbered to curtail unauthorized transactions.

Management’s Response Jeremiah C. Sulunteh (Former Minister) 64. I did not hand pick Mr. Numene Bartekwa as Project Director of the National Postal Address

System (NAPAS), but rather it was the vetting committee recommendations to the then Acting Minister, Mr. Peter N. Ben, under whose signature Mr. Bartekwa was appointed as director of NAPAS. During the same period the President granted all Cabinet Minister Administrative leave and I was not in office when the final decision was reached to appoint Mr. Numene Bartekwa as Project Director of NAPAS. Finally, no employment letter was signed under my signature accepting Mr. Numene Bartekwa as the new boss of the National Postal Addressing System of the Ministry of Posts and Telecommunications.



Dr. Fredrick B. Norkeh (Minister/ Chairman NAPAS Steering Committee) 65. In this regards, please be informed that Mr. Numene T.H. Bartekwa, now a member of the

house of representative earned a total income of US$12,000.00 for eight months he serves NAPAS at US$1,500.00 monthly and not as indicated in count 13 of your recommendation. Income tax payj and deducted from Mr. Bartekwa’s salary is tracked on cheek #00115775 and manager cheek #0000854 in amount of US$268.00 for the Month of June 2011. With respect to the unpaid taxes, Mr. Bartekwa was invited to discussed jointly with you at your exist meeting and other meeting. However, with regards to your recommendation on count #14 and 15, the Authority of the Ministry of Post and Telecommunication in collaboration with NAPAS Stakeholders are in the process of full structuring the entire staff of NAPAS and that a sound financial policy has been put into place to enhance transparency and accountability.

Auditor General’s Position 66. Dr. Frederick B. Norkeh, Minister/Chairman NAPAS Steering Committee did not address the

substantive issue for his failure to withhold income taxes from the remuneration of the Project Director Numene T.H. Barthekwa for the period under audit. It was the responsibility of Dr. Norkeh and Comptroller Shaffa under section 905 of the Revenue Code 2000 to deduct monthly income tax from the salaries and allowances of Mr. Barthekwa. Dr. Norkeh and Comptroller Shaffa should pay the US$2,663.59 to the Ministry of Finance 30 days after the submission of this report to the National Legislature and present the receipt to the Office of the Auditor General for validation.

67. I take note of Mr. Jeremiah C. Sulunteh, former Minister of the Ministry of Posts and

Telecommunications response with regards to Mr. Numene T.H. Barthekwa’s recruitment. However, there was no evidence and material justification to show that he was vetted and selected. I maintain my position that Mr. Numene T.H. Barthekwa was not competitively recruited as Project Director for NAPAS.

Statement of Accountability 68. In this report, it is required that I hold people accountable for public monies entrusted to them

for the purposes of providing services to the taxpayers. Section 53.7 of the Executive Law of 1972 defined the minimum reporting requirements in my audits. Section 53.7 requires me to report the following:

• Any officer or employee who has willfully or negligently failed to collect or receive monies

belonging to the Government.

• Any public monies not duly accounted for and paid into an authorized depository. • Any appropriation that was exceeded or applied to a purpose or in manner not authorized

by law.

• Any deficiency or loss through the fraud, default or mistake of any person.



• Inadequate or ineffective internal control of public monies and assets. When appropriate, the report shall also include recommendations for executive action or legislation deemed necessary to improve the receipt, custody, accounting and disbursement of public monies and other assets.

69. Overall, both financial and administrative activities undertaken by NAPAS’ Management at the

Ministry of Posts and Telecommunications during the periods under review were characterized by a number of financial irregularities and major control deficiencies. The total irregularities noted amounted to US$2,663.59 as income tax not deducted by the Minister of Posts and Telecommunications and the Comptroller from the compensation of NAPAS’ Director.

Acknowledgement 70. I wish to express my thanks and appreciation to officials and staffs of the Ministry of Posts and

Telecommunications. I further thank the staff of the GAC for assisting me to have carried out this audit. The professionalism and commitment throughout the audit are commendable.

Winsley S. Nanka, CPA, CFE Acting Auditor General, R.L.

July 2012



ANNEXURE 1

ACCOUNTABILITY SCHEDULE

No. Ref. Paragraph

Issue Amt. US$ Amt. L$ Responsible Officer

1. 55 Failure to deduct taxes of Mr. Numene T.H. Barthekwa, Project Director on his monthly remuneration of US$12,080.00 from November 2010 to June 2011 2,663.59

Dr. Frederick B. Norkeh, Minister/Chairman NAPAS Steering Committee & Mr. Henry S. Shaffa, Comptroller Ministry of Posts and Telecommunications

TOTAL 2,663.59



Schedule 1 Total Credit Transaction for CBL

Date Transaction Type Check Number Credit (L$) Feb. 12, 2010 Deposit CBL CK # 34236 2,500.00 Bank Charges

Date Type Amount (L$) May 2, 2011 Fees for Instant Statement 252.00 Total Credit Transaction at CBL

Date Transaction Type Reference Credit(US$) Jan. 6, 2010 Deposit 129 CDA 6,600.00 Feb. 4, 2010 Deposit 92395 CDA 5,000.00 Feb. 4, 2010 Deposit 91342 CDA 1,000.00 Feb. 19, 2010 Deposit 648969 CDA 6,000.00 May 13, 2010 Deposit 674847 CDA 25,000.00

TOTAL 43,600.00

Debits/Withdrawal Transactions at CBL Date Transaction Type Reference Withdrawal (US$)

Feb.16, 2010 Withdrawal 7563 INT 6,600.00

May 17, 2011 Withdrawal 15751 CQW 3,000.00

June 20, 2011 Withdrawal 15752 CQW 7,500.00

Aug. 10, 2011 Withdrawal 0015754 CQW 1,582.00

TOTAL 18,682.00

Bank Charges

Date Type Amount (US$) May 2, 2011 Instant statement 3.50 May 24, 2011 Cost of two Check books 30.00

TOTAL 33.50 Total Deposit from NAPAS’ Books

Date Description Check # Amount US$ Jan. 6, 2010 Contribution to NAPAS 000129 6,600.00 Jan. 8, 2010 Contribution to NAPAS 0091342 1,000.00 Jan. 20, 2010 Contribution to NAPAS 0092395 5,000.00 Feb. 8, 2010 Payment to NAPAS 648969 6,000.00 Feb. 13, 2010 Contribution to NAPAS 674847 25,000.00 Total 43,600.00



Total Withdrawal from NAPAS’ Book Date Description Check # Months Taxes

not paid for Amount US$

Feb. 16, 2010 Corr. Of Deposit Slip 7563 6,600.00 May 16, 2011 Salary for 2 Months 0015751 November &

December 2010 3,000.00 June 17, 2011 Salary for 5 Months 0015752 January,

February, March, April & May 2011 7,500.00

July 21, 2011 Salary for 1 Month 0015754 June 2011 1,582.00 Total 18,682.00 Bank Charges

Date Description Check # Amount US$ May 2, 2011 1 Copy of instant. Statement 53847 3.50 May 24, 2011 2 Check Books 74022 30.50

Total 33.50 Withdrawal

DESCRIPTION AMOUNT (US$) AMOUNT (L$) TOTAL WITHDRAWAL CBL BOOK 18,682.00 0.00 TOTAL WITHDRAWAL NAPAS BOOK 18,682.00 0.00 VARIANCE: 0.00 0.00 Deposit

DESCRIPTION AMOUNT (US$) AMOUNT (L$) TOTAL DEPOSIT CBL BOOK 43,600.00 2,500.00 TOTAL DEPOSIT NAPAS BOOK 43,600.00 2,500.00 VARIANCE: 0.00 0.00 Bank Charges

DESCRIPTION AMOUNT (US$) AMOUNT (L$) TOTAL BANK CHARGES CBL BOOK 33.50 0.00 TOTAL BANK CHARGES NAPAS BOOK 33.50 0.00 VARIANCE: 0.00 0.00

Schedule 1 Cont’d



Schedule 2 Donation made from NAPAS’ Donor Conference No. Person Entity Amount Paid Kind Of

Payment US$ L$ 1. Dr. Kenneth D. Jackson, Jr. Blood Int’l 10,000.00 - Check 2. Prof. Lavela B. Kortima Min of

Commerce - 2,500.00 Check

3. Dr. Walter Gonegalley MOH 100.00 - Cash 4. Elizabeth Sale Mulbah - 50.00 100.00 Cash 5 Unidentified - - 100.00 Cash 6. Unidentified - 5.00 Cash TOTAL 10,155.00 2,700.00 Pledges made at NAPAS’ Donor Conference No. Person Entity Amount Pledged Amount

Paid Balance Due

US$ L$ US$ US$ L$

1. Michael Moifolley

MOF 100.00 0.00 0.00 100.00 0.00

2. Hon. Angelique Weeks

LTA 45,000.00 0.00 25, 000.00 20,000.00 0.00

3. Dr. Walter Gonegalley

MOH 5, 000.00 0.00 0.00 5, 000.00 0.00

4. Tornorlah Varpilah

His Family 100.00 0.00 0.00 100.00 0.00

5 Unidentified Personal 100.00 0.00 0.00 100.00 0.00 6. Lawson V.

Bash His Family

50.00 0.00 50.00 0.00 0.00 7. Ansu Sirleaf &

Morris Siryon Inspectorate/MPT 0.00 1, 000.00 0.00 0.00 1,000.00

8. Michael Moifolley

Min Of Finance 1,000.00 0.00 0.00 1,000.00 0.00

9. Peter F. Zaizay His Family 200.00 0.00 0.00 200.00 0.00

10. Francis Dopoh, II

His Family 100.00 0.00 0.00 100.00 0.00

11. Vivian J. Cherue

Personal 100.00 0.00 0.00 100.00 0.00

TOTAL 51,750.00 1,000.00 25,050.00 26,700.00 1,000.00



EXHIBITS

THE EXECUTIVE LAW OF 1972 CHAPTER 53.3DUTIES OF AUDITOR GENERALThe Auditor General shall be the officer of the government principally responsible for conducting

comprehensive post audits, special financial investigations, reconciliation and analyses, and

continuous audits on a routine basis. He shall:

(a) Once a year perform audits of all government agencies and Government organizations andexamine, to the extent he deems necessary, all transactions and accounts relating to thereceipt, disbursement, and utilization of the public monies;

(b) Perform audits of all property accounts and transactions of all Government agencies andgovernment organizations; such audits shall be conducted as far as practicable at the placeor places where the property and records are located and shall include an evaluation of theeffectiveness of internal control and other methods of safeguarding the assets of thegovernment;

(c) Perform audits of withdrawals of money within the responsibility of the Government asstated in the appropriation acts or financial obligations by the order of the Ministry ofFinance;

(d) Inspect the books of account of banks and financial institutions to verify the amounts ofgovernment monies, securities, and other assets hypothecated or on deposit, or otherwiserequire written bank confirmations of government monies, securities, and other assets undercontrol of such banks or financial institutions;

(e) Inspect the books of account of privately owned commercial and manufacturingestablishments for the purpose of verifying transactions with government agencies andgovernment organizations, requiring outside written confirmations of accounts receivableand employing such other extended audit procedures as are necessary;

(f) Prescribe auditing standards and develop and implement auditing procedures, methods, andtechniques appropriate to governmental accounting practices;

(g) Require any government official for employee or other person to testify on oath as a witnessin matters pertaining to financial transactions which involve the use or custody ofgovernment monies or assets.

REPORT OF THE AUDITOR-GENERAL - General … the National Postal Address...i Promoting Transparency,...

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