SDL Govt Loans Excessive

The Public Accounts Committee has today raised concern on the continued reliance of the Soqosoqo Duavata Ni Lewenivanua (SDL) led government on loans in 2005 and 2006 to meet its day to day operations.

As the committee released its first finding after assessing the 2005 and 2006 Auditor General reports, the committee said in 2006, for instance, they are gravely concerned that both overseas and domestic loans totaling $633,885,000 was taken by the then government to finance the gross deficit which was $285.7M.

The Public Accounts Committee revealed that in spite of the excessive amount borrowed, Treasury Bills were also raised for the amount of $141,311,000 bringing the total loans raised in the year 2006 to $775,195,000.

However, the committee said 51% of the borrowed amount covered the budget deficit and 49% were simply excessive borrowings.

It also found that unpresented cheques continued to be an issue of concern, as the number increased with a value from $51,889,000 in 2005 to $60,401,000 in 2006, which is an increase of 18%.

The committee headed by Manu Korovulavula was given 66 pending audited reports to review and examine.

It said it has concentrated its efforts on the 2005 reports and thereafter as the rest would merely be historical.