The Department of Education, Sport and Culture is under investigation after failing to comply with financial regulations in its procurement of school meals.
Treasury Minister Dr Alex Allinson confirmed that his department had been aware of the breach since September.
The issue was outlined in a previous answer from Education Minister Daphne Caine said that officers were “working closely with Treasury to ensure that the correct processes are followed and that full compliance with Financial Direction C is achieved as soon as possible”.
A written answer also confirmed that suppliers for the new primary school menu were selected based on “discussions with existing suppliers and making direct contact to communicate menu requirements,” with “no contracts in place with individual suppliers”.
Breach
Treasury Minister Dr Alex Allinson confirmed that Treasury was notified of the breach on September 19 and that the audit advisory division of Treasury is responsible for investigating breaches of the financial regulations.
Lawrie Hooper said the issue raised serious concerns, saying: “In this case, the rules have clearly not been followed. So there is no evidence that the department is spending its money effectively, wisely, or getting value for money out of those arrangements.”
He pressed the Minister on how Treasury ensures value for “millions of pounds worth of taxpayers’ money” when regulations are breached.
Dr Allinson replied that a “full investigation will take place,” and that “there are a whole range of sanctions that can be implemented depending on the intent of the breach and the seriousness of the breach”.
He added: “In terms of the actions taken following the investigation, these will obviously be determined by the AEDs recommendations, if the if it’s found that the breach was not intentional, these may include additional training and process operational improvements or segregation of duties.
“Obviously, if it’s found that there’s been an intentional breach of financial regulations, this may be taken further in terms of a more serious case.”
Julie Edge also questioned where ministerial responsibility lies, with Dr Allinson saying that the accountable officer in this matter is the Chief Executive of DESC.
The investigation by the Audit Advisory Division is ongoing, with recommendations for action to follow its conclusion.