Office of the Auditor General (OAG) of Seychelles and the National Audit Office (CNAO) of the People’s Republic of China signed a memorandum of understanding (MoU) for improving bilateral co-operation between the two supreme audit institutions (SAI) in a more formal and organized manner.

CNAO is one of the largest SAIs in the world and a leader in several areas of public sector auditing with a full-fledged training and professional development center offering international courses.

The MoU with CNAO will pave the way for the two SAIs to co-operate in advancing the public sector auditing in the respective countries, particularly, through:

  • exchange of information, experiences and best practices on public sector auditing procedure and methodology including audit realization issues through trainings and study visits; and

As per a request made by the FPAC of the 6th Assembly, the OAG looked into the various land deals and transactions between the government and the political party presently known as United Seychelles.

The resulting report was submitted to the National Assembly and the Cabinet office in January 2021.

Audit found that, in 1993, at the dawn of the Third Republic, the Government of Seychelles (Government) transitioned from a one party state to a multiparty system of governance.

At the time, a delinking process took place to separate the SPPF (now United Seychelles), which was at that time the ruling political party from the government.

The delinking process involved the creation of a committee chaired by the Director of Lands at that time. The committee was tasked to carefully look at the propositions made by SPPF for the purchase or lease of various premises and sites for its offices.

Auditor General, Mr.Gamini Herath submitted his annual report for 2019 to the Speaker of the National Assembly, Hon.Roger Mancienne, as required under Article 158 of the Constitution.

The report bring out the findings arising from the audit of government accounts for 2019 and various Ministries, Departments and Agencies (MDAs) undertaken during the previous audit cycle.

This is the fourth consecutive year for which the report has been submitted before the end of December statutory deadline.  However, Auditor General feels that the report could have submitted little earlier had it not been for the impact of COVID-19 situation.

The activity report and audited financial statements of OAG for 2019 was also submitted to the Speaker under Section 26 of the Auditor General Act. This report was due by the end of June, however, delayed due to the COVID-19 situation which impacted not only on the operations of OAG but also the external auditing of the OAG.

SAI Seychelles (OAG) in INTOSAI WGPD

INTOSAI Working Group on Public Debt met on 26th and 27th  August 2020 to discuss on the 2020 theme ‘implementation of SDGs: exploring the role of public debt auditors in the light of COVID-19.

SAI Seychelles participated in the meeting for the first time since becoming a full member of the WG in late 2019.

Enriching the participants’ knowledge and understanding of the issues relating challenges and opportunities in the audit of public debt, the representatives from UNTAD, World Bank, SAI China, SAI Indonesia and IDI made excellent presentations.

In view of the large number of member SAIs in the WG (some 37), the meeting was held in two days targeting two groups, of which OAG was in the first group on the 26th


Auditor General, Mr Gamini Herath, who also served as Chairman on the commission of inquiry into the disposal of assets of COSPROH, submitted an interim report on 24.06.2020 to H.E. President of the Republic of Seychelles. The report was submitted under Section 8 of the Commissions of Inquiry Act.

The commission of inquiry was set up in August 2018, based on a resolution passed in the National Assembly, to look into the disposal of immovable properties of the former state company ‘Compagine Seychelloise de Promotion Hoteliere’, better known as COSPROH.


Performance Audit report

Management of the Fuel Incentive Scheme

Seychelles Fishing Authority

The Office of the Auditor General (OAG) has laid its 9th performance audit report before the National Assembly in February 2020. The report examines the effectiveness of the Fuel Incentive Scheme as operated by the Seychelles Fishing Authority (SFA) for the period January 2015 to August 2019.

Since its initiation in 1991, the FIS has been under the management of SFA with the objective to reduce the operating costs of boat owners involved in commercial fishing activities and to improve the viability and profitability of their fishing operations. Under the scheme, boat owners are able to receive 100 percent Excise Tax exemption on the amount of fuel consumed by their vessels during their fishing operations. Presently, the commercial boat owners involved in Artisanal, Semi-industrial, Dropline and Sea Cucumber fishing activities are eligible to benefit from the scheme.

The Seychelles public sector is now equipped with the knowledge to prevent, detect and investigate frauds and corrupt practices. The applicable methodology and techniques drawn on from international good practices have been documented in a manual titled ‘Seychelles Public Sector Fraud Awareness and Forensic Audit Manual’. A copy of the manual was presented to President Danny Faure on Friday the 6th December by Auditor General, Mr. Gamini Herath. The manual is the final product of a six-week-long project undertaken by the Office of the Auditor General (OAG) with the financial assistance from the US Embassy in Mauritius under the FTIF. The project was undertaken during October and November with the participation of over 50 participants from several public entities, namely, Financial Intelligence Unit, Seychelles Revenue Commission, Financial Services Authority, Anti- Corruption Commission Seychelles, Internal Audit Division of Ministry of Finance and Public Enterprise Monitoring Commission.

Funded by the US Embassy in Mauritius under the Fiscal Transparency Innovative Fund (FTIF), the Office of the Auditor General (OAG) organized a series of workshops during October and November 2019 aimed at increasing awareness of fraud and corruption in the public sector in Seychelles. The project, which brought together over 50 participants from 7 different public bodies, included sessions of awareness augmentation and practical training in forensic auditing as a tool to combat such malpractices. The project also resulted in the production of a manual to guide public officers in the prevention and identification of fraudulent practices and fighting the same, where they exist, through the methodology outlined in the manual.

The training and workshops were attended by over 50 staff from OAG, SRC, FIU, IAD, PEMC, ACCS and FSA.

The launching of the manual held on 28 October 2019, at Eden Blue Hotel, was attended by the Deputy Head of Mission from the US Embassy, the Minister for Finance, Trade and Economic Planning, several members of National Assembly, several CEOs and other invited guests numbering over seventy-five persons. The keynote speech was delivered by the Minister for Finance, Mr Lalanne, followed by the welcome remarks by the Auditor General. The Deputy Head of Mission also addressed the gathering. The manual was launched by Auditor General, Gamini Herath, by handing over copies of the same to the Minister for Finance and the Deputy Head of the Mission, Ms. Judes E Debaere.

Mr. Kenneth Racombo, Principal Secretary in the Office of the Vice President, led the Seychelles delegation to the Extraordinary meeting of the COMESA Council of Ministers that took place on 5th April 2019 in Lusaka, Zambia. The Extraordinary Council was convened in an effort for member states to pronounce on a number of pertinent matters concerning the institution, in particular, the external auditing framework (COBEA) and the resultant audit report for 2017 and the report of the select committee thereon.

The Council of Ministers undertook a minute of silence in respect and remembrance of the late President France Albert Rene and other persons who have passed on since the beginning of the year.

As part of his deliberations to the meeting, PS Racombo intervened on the need to develop COMESA’s Blue Economy agenda as set within the COMESA Strategic Plan 2016-2020. The Seychelles delegation requested that COMESA facilitate a workshop to advocate and sensitize member states on the Blue Economy with the objective of devising concrete activities for the region.

The meeting, which was preceded by the Meeting of the COMESA Intergovernmental Committee from 3 to 4 April 2019, further managed to pave a way forward for upcoming engagements between the COMESA Secretariat, Member States and other International Cooperating Partners, ahead of the upcoming Ordinary Meeting of the COMESA Council of Ministers and the Summit of COMESA Heads of State and Government that are scheduled to take place in the latter part of the year.

The meeting of Auditors General was called by the Secretariat to review and approve the COBEA audit charter. The Charter is to guide the two parties, i.e. the Secretariat and the COBEA on their respective rights and obligations when undertaking external audits of COMESA. The development of the Charter is an important step in the advancement of the road map approved in March 2018 by the Auditors General to give effect to the Council of Ministers decision to change the existing external auditing arrangements in that the audits were undertaken by private auditors up to 2016.

The COBEA become operational and undertook the audit of COMESA financial statements for 2017 in 2018. The resultant audit report was qualified and the management letter revealed a number of control weaknesses and irregularities. The management did find faults with the audit process and declined to accept the report in saying that it was given time to respond to audit queries nor was a draft report produced prior to issuing the final report.  Due to the nature of serious disagreements between COBEA and the Secretariat, a select committee was appointed by the Council to look into the matter and the Committee issued a report in October 2018 following deliberations. Despite the select committee recommendation to adopt the audit report on 2017 financial statements, the Secretariat caused the Council of Ministers in April 2019 to adopt it as an internal document instead.

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