ASP satisfied with improvements and AG’s 2021 report |24 January 2023

Ms Morin during the press conference yesterday (Photo: Laura Pillay)

The management, board and Ministry of Employment and Social Affairs are satisfied with the findings of the Auditor General’s report for 2021 and the accomplishments of the organisation throughout the year.

Chief executive officer Brenda Morin, in a press conference yesterday afternoon, noted that the management, board and parent ministry, the Ministry of Employment and Social Affairs, are especially content that the report “highlights the hard work and dedication of those who manage the agency, who have helped to elevate the standards of the institution, through good governance”.

The 2021 report is a significant improvement from that of previous years, where overpayments, corruption and certain irregularities in conforming to government procedures were observed.

In a bid to address the different inconsistencies, Ms Morin as the newly appointed CEO made it a priority to work with the World Bank and the Ministry of Finance, National Planning and Trade towards strengthening the efficiency and effectiveness of the country’s social protection system. The World Bank in 2021 approved a sum of US $30 million as a loan to government, towards the reform.

“In 2021, ASP managed to contribute US $14 million through the reforms and internal works, towards the national budget,” Ms Morin pointed out.

Asides from the major financial accomplishment, the agency established its new board and an audit committee reporting to the board in relation to the various controls in place. A compliance unit has also been established towards ensuring conformity with the law and standard operating procedures.

In 2021, the agency made payments totalling R796,103,521 towards retirement benefits, and of a sample of 90 new applications, only two instances were recorded whereby the authorisation letter was not signed by the benefits or welfare officer, a clear indication that the internal controls are working.

As further highlighted by the report, ASP effected payments to some 800 welfare claimants per month, totalling R21,840,436 over the entire year. The only recommendation of the Auditor is that the agency performs monthly reconciliations between the two records to ensure that there are no unexplained differences between the general ledger, and payroll reports. The audit revealed a difference of R1,259,871.

“We have three payment modes at ASP – through the Treasury payroll, the payment voucher which is in cash, and the TIS system. I am looking forward to us having one payment modality. All these three methods are working well, but there could have been means for us to make this information accessible to the Auditor General,” Ms Morin stated.

For improved management of funds, ASP streamlined some of its programmes and benefits, as well as introducing standard operating procedures for both welfare and home care, all of which have contributed towards the positive audit report.

The majority of beneficiaries are now paid through their bank accounts rather than cash payments.

In relation to the Seychelles Trading Company (STC) card programme, controls to the system means that ASP has been able to return to the government over R2 million which was not being used. The programme is still in place for qualifying applicants on Mahé. The programme was introduced in March 2009.

“In 2021 ASP also celebrated its tenth anniversary, and we seized the opportunity to re-launch ASP, to empower our people, and to rebrand. We also recognised our long-serving staff and thanked them for all their efforts,” Ms Morin added.

Ms Morin added that the agency did not have to make any extra efforts to achieve such a positive rating, but that it was able to do so through existing resources and with the staff they already had on hand.

“The agency is now ready for its second phase of development and this is a complete review of all benefits paid out by ASP,” Ms Morin added.

Based on the findings of an independent consultant whose services was sought in 2021, the agency will in the near future be launching a bidding process for the provision of an automatic and modern digital system, and is expected to be in operation before year-end. The system will be useful both internally and for applicants, and is expected to bring about more efficiency to the agency.

Laura Pillay