A recent review by Mauritius' Financial Crimes Commission (FCC) has identified significant systemic weaknesses and procedural flaws in the disbursement of funds for municipal projects at the Quatre Bornes Municipal Council. The review, conducted under Section 6(2)(j) of the Financial Crimes Commission Act 2023, evaluated the council's operational framework, complaints, and intelligence received by the commission. The FCC's Education and Prevention Division carried out the Financial Crimes Prevention Review.
The FCC's report highlighted severe shortcomings across four major operational areas. One of the key findings was payment delays, with the 28-day statutory payment timeframe set by Procurement Policy Office (PPO) Directive No. 48 being regularly breached. Additionally, contractors' payment requests frequently failed to comply with PPO Directive No. 63. These delays and non-compliance issues leave the council exposed to risks of abuse of office and corruption.
The review also identified a concentration of power and staffing vacancies as a major concern. A prolonged vacancy in the position of Civil Engineer has forced the Head of the Public Infrastructure Department to handle technical validation duties, creating an unhealthy concentration of approval, verification, and payment responsibilities within a single post. This increases the risk of misappropriation of public funds and fraud.
The FCC also found that declarations of interest are recorded on file but are not subjected to any formal review process, leaving the council vulnerable to unmonitored conflicts of interest. Furthermore, financial and project data on the Council Project Management (CPM) system is hosted overseas, while sensitive bid evaluation reports are accessible to council staff with no involvement in those specific procurement proceedings.
The review highlighted data protection and IT risks, with manual data transfers between the CPM and the EBiz accounting system carrying a high risk of error. The FCC also identified a lack of formal framework with infrastructure bodies, specifically the Land Drainage Authority (LDA), which transfers municipal projects to the council without a contractual framework governing its obligations.
To rectify these vulnerabilities and reduce the potential for financial crimes, the FCC outlined a comprehensive series of mandatory reforms. These include establishing a formal written agreement specifying the exact roles and timelines of each body, a shared structure to manage payment delays linked to regulatory authorisations, and a phased certification of works tied to verified milestones.
The FCC's report stressed that while critical vulnerabilities were identified, no established acts of wrongdoing or malpractice were found during the investigation. The commission's findings aim to prompt systemic reform and improve the council's operational framework to prevent financial crimes and ensure the proper use of public funds.
Key points
- The FCC identified four major areas of concern: payment delays, concentration of power and staffing vacancies, unmonitored conflicts of interest, and data protection and IT risks.
- The review highlighted the need for a formal written agreement between the council and the LDA to govern the transfer of municipal projects.
- The FCC outlined a series of mandatory reforms to rectify the identified vulnerabilities and prevent financial crimes.
