The National Assembly on Monday unanimously approved the state’s budget expenditures and revenue collection for 2005, but a report from the government’s National Audit Authority provided to lawmakers ahead of that debate was strongly critical of those same figures.
“The National Audit Authority has observed that ministries and institutions, provinces and municipalities did not comply with the law and procedures concerning the collection of revenue and budget expenditures,” states the Nov 14 report, which was signed by Auditor-General Ut Chhorn.
“In that context, they did not try their best to collect revenue. They left alone many debts and they kept [collected] revenue without transferring it to the state budget on time. Expenditures didn’t have documentation and the withdrawal of funds for expenditures did not comply with the law on finance,” according to the audit report, a copy of which was obtained Tuesday.
The report was particularly critical of customs and tax collection.
“There was a continuing loss of tax revenue because there was no good cooperation between the tax and excise department to prevent companies from avoiding paying their taxes,” the report said. The audit report did, however, ultimately endorse the 2005 budget, but with a number of caveats and recommendations attached.
Finance Ministry Secretary of State Ouk Rabun defended his ministry on Monday at the Assembly, saying it was impossible to enforce tax collection 100 percent, but officials were doing their best.
Customs chief Pen Simon could not be reached for comment.
CPP lawmaker Cheam Yeap, who chairs the Assembly commission on finance, said that he had questioned Finance Ministry officials over the shortcomings mentioned in the audit and was satisfied that appropriate measures were being taken to prevent them from reoccurring.
“We have advised those customs officials and the ministry has already punished them,” he said, referring to officials accused of corruption.
He added that the budget laws for 2007 and 2008, the latter of which was passed on Friday, show a marked improvement over 2005.
