AMRTP (4.53 billion FCFA), ORTM (4.10 billion), OMH (247.95 million), ORTM (4.10 billion), OMH (247.95 million), PPM (236.41 million) and AMARAP (48.48 million) are also pinpointed
The Office of the Auditor General submitted its 2019 report to the President of the Transition, Bah N’Daw, on October 30. This document, which is a compilation of individual reports, covers 31 audit engagements, including 15 financial or compliance audits, 8 performance audits and 8 follow-up audits on recommendations. These audits concerned Foreign Affairs, Territorial Communities, Mining, Religious Affairs, Finance, Health, Agriculture, Education, Energy, Telecommunications, Housing and Communication. They highlighted huge administrative and financial irregularities involving several hundred billion FCFA.
The various missions of the OAG revealed, on the whole, that the current management of public funds in the audited entities does not allow the State to ensure that its resources are judiciously used and its assets properly safeguarded. This management, the report points out, is characterized by a lack of transparency in the keeping of public accounts, the recurrent violation of several legislative and regulatory provisions governing public finances, the poor application of the clauses of the conventions signed between the State and the various partners, and the unsuitability of certain texts to the evolution of the legal order.
These weaknesses have led to significant administrative, environmental and financial irregularities. Among the structures audited were Mali’s representations in several countries, including Mali’s Embassies in Washington, D.C., Rome, Madrid, Abidjan, Ouagadougou and the Consulate in Douala. The audit covered fiscal years 2015, 2016, 2017 and 2018 (1st quarter). For the Embassy of Mali in Washington, D.C., U.S.A., the missions found financial irregularities amounting to more than 181 million FCFA. For that of Mali in Rome, Italy, the shortfall amounts to 284.15 million FCFA, that of Madrid, Spain, 51.05 million FCFA, and that of Mali in Abidjan, Côte d’Ivoire, 166.48 million FCFA. The OAG found huge financial irregularities at the Embassy of Mali in Ouagadougou, Burkina Faso with 1.84 billion FCFA while at the Consulate of Mali in Douala, they amount to 133.69 million FCFA. At the level of the Territorial Communities, the mission focused on the management of the Commune II town hall in the district of Bamako, whose financial years 2017 and 2018 (first half of the year) saw financial irregularities amounting to CFAF 153.64 million. In the mining sector, the compliance audit, examining the establishment agreements, concerned the Société des Mines d’or de Loulo (SOMILO-SA), the Société des Mines d’or de Gounkoto (GOUNKOTO-SA), on the one hand, and the Société des Mines de Syama (SOMISY-SA), on the other hand. It covered revenue and expenditure operations as well as environmental aspects during fiscal years 2015, 2016 and 2017.
More than 60 billion FCFA charged to two Barrick mines
For SOMILO-SA and GOUNKOTO-SA, both controlled by Barrick, financial irregularities amount to 60.53 billion FCFA. They relate specifically to the non-payment of the IBIC owed to the foreign providers of GOUNKOTO-SA for an amount of FCFA 294.73 million; the non-payment of dividends owed to the State of Mali on the resources of SOMILO-SA amounting to FCFA 26.21 billion; interest charges on loans not justified in the financial statements of SOMILO-SA amounting to FCFA 2.08 billion; undue interest payments to RRL under irregular loan contracts amounting to FCFA 31.93 billion.
CFAF 227 billion in irregularities for the Syama mine alone
As for Société des Mines de Syama (SOMISYSA), controlled by Resolute Mining Limited, the mission audited the revenue and expenditure operations as well as the environmental aspects for fiscal years 2015, 2016, 2017 and 2018. At this level, financial irregularities amounted to 227.87 billion FCFA. The OAG notes that the Chairman of the Board of Directors of SOMISY-SA set up an unjustified loan of 168.65 billion FCFA. Despite several requests from the mission, SOMISY-SA has not provided any document justifying the amount recorded as a loan.
The General Meeting of Shareholders of SOMISY-SA did not authorize the distribution of dividends to the State of Mali for a total amount of FCFA 31.91 billion during fiscal years 2015, 2016, 2017. The Chief Executive Officer of SOMISY-SA has not repaid a loan of 4.65 billion FCFA to the State of Mali. The Managing Director of Resolute Mining Limited (RML) irregularly set up a loan facility on behalf of SOMISY-SA. Indeed, the terms of this new loan facility were rejected by the Malian directors on the grounds that « the interest rate is too high and the maturity too far in the future ».
In spite of this rejection, the Board of Directors validated the said facility with the votes of the directors of RML whereas the latter should not take part in the deliberation in accordance with the provisions of the revised Uniform Act of OHADA, relating to the Law of Commercial Companies and Economic Interest Grouping. The amount of interest unduly received by RML on this irregular loan amounts to FCFA 20.47 billion.
Also, continues the document, the Managing Director of SOMISY-SA has irregularly deducted from his fiscal result the amount of interest paid to RML. The total amount of interest in 2017, that is 6.92 billion FCFA and that of 2018 which amounts to 8.43 billion FCFA, exceeds the level of the share capital of SOMISY-SA, which is 12.5 million FCFA. In addition, the loan/equity ratio applicable to the financing of Resolute ML is 127% in 2017 and 132% in 2018. However, according to the agreement, if the 70% threshold is exceeded, interest is no longer deductible. The total amount of interest, amounting to FCFA 15.36 billion, should be reintegrated into the tax result and subject to Corporate Income Tax (CIT) at a rate of 30%. Thus, SOMISY-SA owes the State a total amount of FCFA 2.08 billion. Finally, the Managing Director of SOMISY-SA has not declared the totality of the patent and related duties due for a total amount of 102.26 million FCFA. With the exception of his office in Bamako, he has not calculated and paid elsewhere the patent on its administrative buildings, located in Syama.
In the audited sector, the organization of the pilgrimage to the holy places, including the revenue and expenditure operations related to the fiscal years 2016, 2017 and 2018 revealed financial irregularities amounting to 639.86 million FCFA.
Independent authorities and personalized bodies pinned personalized bodies pinned
Also during 2019, the OAG also reviewed certain independent administrative authorities and custom organizations. Among them, the Malian Regulatory Authority for Telecommunications, Information and Communication Technologies and Posts (AMRTP), where it detected financial irregularities of about 4.53 billion FCFA; ORTM (4.10 billion FCFA of financial irregularities, between 2016 and 2018) ; l’Agence Malienne de Radioprotection Eta6ts f Nation inancier inanciers 2018 de Nyèsigiso s 2018 de Nyèsigiso The Auditor General Samba Alhamdou Baby (left) handing over the 2019 report to the transition president, Bah N’Daw L’AMRTP (4.53 billion FCFA), ORTM (4.10 billion), OMH (247.95 million), PPM (236.41 million), and AMARAP (48, 48 million irregularities, the Malian Housing Office (OMH) for 247.95 million FCFA between 2016 and 2019, the Pharmacie Populaire du Mali (PPM) for 236.41 million FCFA (2016-2019). Faced with these irregularities, the OAG forwarded the various reports to the President of the Accounts Section of the Supreme Court and to the Public Prosecutor at the High Court of Commune III, in charge of the economic and financial sector. It should be noted that the OAG also carried out in 2019 some 8 performance audit missions concerning agricultural subsidies, local authorities and state rolling stock. It should be added that in addition to financial irregularities, those of an administrative nature are commonplace in the various structures audited.