Auditor general wants assets worth millions recovered at RADA

The loss of government assets worth tens of millions of dollars at the Rural Agricultural Development Authority (RADA) has led to Auditor General Pamela Monroe Ellis making a referral to Financial Secretary Darlene Morrison for the value of the loss to be recovered.

In her annual report, which was tabled in Parliament last week, the auditor general recommended to the financial secretary that a surcharge in the sum of $64.7 million be imposed on the accounting and/or accountable officers for the loss.

Surcharge refers to the process enabled by the Financial Administration and Audit (FAA) Act whereby the government can recover money or assets lost due to negligence by public officers.

Under Section 20 of the FAA Act, the financial secretary may impose a surcharge following recommendations from the auditor general, depending on the nature and circumstances of the loss incurred.

An audit of RADA and its mishandling of the distribution of Moroccan fertiliser, last year, uncovered deficiencies in the agency’s internal control systems relating to the inventory management and distribution of the shipments of fertiliser in 2022 and 2023.

Section 7.3.1(i) of the FAA (Financial Instructions) states “Accounting Officers shall be responsible for keeping proper inventory records of all stationery, consumable stores, furniture, office machines, equipment, plant and machinery, lands, buildings and other government assets including those received as gifts and private properties placed in government’s custody”.

The findings of the audit which was released in May 2025 indicated that despite established standard procedures to distribute agricultural inputs, RADA was unable to verify that tens of millions of dollars’ worth of fertiliser, allocated to members of parliament for onward distribution, actually reached the intended farmers.

According to the special audit, between 2019 and 2023, more than 11,000 bags of fertiliser – valued approximately $54 million and procured under a bilateral agreement with the Kingdom of Morocco – were distributed through members of parliament (MPs).

RADA indicated at the time that despite repeated requests, MPs did not submit distribution sheets detailing recipients. Accordingly, the auditor general said the agency could not provide proof that the fertiliser reached legitimate farmers or that proper measures were followed.

Monroe Ellis warned in the May 2025 audit that RADA’s accountable officer was legally responsible for the management of public assets, including the Moroccan fertiliser, and should have implemented proper controls over its distribution regardless of whether the process was carried out by RADA or MPs.