The Standing Committee on Public Accounts (PAC) has called on the Sugar Industry Tribunal (SIT) to conduct proper due diligence and engage a reputable accounting firm after years of audit issues and weak financial controls highlighted by the Office of the Auditor-General.
The Committee made the recommendation after reviewing the Tribunal’s audited financial statements for 2017 to 2020, which received disclaimer and qualified audit opinions due to missing records, non-compliance with accounting standards, and poor financial management practices.
According to the Auditor-General’s findings, the Tribunal failed to provide evidence of impairment assessment for receivables totaling $217,106, while VAT reconciliations worth $17,015 were not provided. Disputes also surrounded $181,722 owed from the Near Infrared Project, preventing confirmation of the financial statements’ accuracy as of December 31, 2020.
The audit also noted non-compliance with International Financial Reporting Standards (IFRS), weak internal controls over cash, payments, and assets, and untraceable fixed assets.
PAC said the findings were concerning and pointed to the need for stronger accountability and proper financial oversight.
“The Tribunal has been engaging an accounting firm on an ad hoc basis, but despite this, financial reporting did not show any significant improvement,” the Committee noted.
“It is critical that before engaging any firm, the Tribunal carries out proper due diligence and selects a reputable accounting firm capable of meeting IFRS requirements and ensuring compliance with the Financial Management Act 2004.”
The Tribunal told the Committee that its 2021 financial statements were submitted to the Auditor-General in May 2025, while the 2022 and 2023 accounts are still being finalized.
It also highlighted funding constraints, saying it only receives an operating grant that is insufficient for capital purchases such as vehicles, computers, and furniture.
PAC has recommended that the Tribunal be given adequate and clearly defined budget allocations to ensure it can operate effectively and maintain proper financial governance.
