A new report from the National Audit Office on the government’s 2025 financial statements has identified irregular spending from the Contingency Fund. This report, specifically flagging irregular spendings, shows concerns about fiscal transparency. Expenditures from this fund are typically permitted only under unforeseen circumstances and require subsequent parliamentary consideration. Section 153(2) of the Constitution mandates that "where any advance is made from the Contingency Fund, a supplementary estimate shall be presented, and a Supplementary Appropriation Bill shall be introduced for the purpose of replacing the amount so advanced with ninety days of the advance being made." This constitutional provision ensures parliamentary oversight and replenishment of the fund after any advance, emphasizing the temporary nature of such advances.
Auditors Demand Explanation
Auditors have demanded a "plausible explanation" for why funds are being transferred from the Contingency Fund, according to the National Audit Office report. The Ministry of Finance acknowledged that virements from the contingency budget line should be strictly reserved for emergency expenditures. The Ministry of Finance stated that the "referenced virements were undertaken to address unforeseen budgetary pressures that were essential to ensuring the smooth operations" of the government. However, the auditors maintained that the justification of unplanned budget pressures does not demonstrate that the expenditures met the specific conditions for the use of the Contingency Fund, thereby questioning the validity of these transfers.
Specific Virement Details
Specific instances of questioned spending include a D26 million virement on January 23, 2025, for which no approval was provided, directly contravening established financial protocols. The Ministry of Youths and Sports received D47 million for the remodelling and rehabilitation of the Independence Stadium. The Office of the Vice President (OVP) had D10.4 million vired for travel expenses, with an additional D2,445,000 later transferred to the OVP for similar purposes, raising questions about the necessity and oversight of these repeated travel-related expenditures.
A significant sum of D59,467,752 was vired on June 26, 2025, without any explanation provided by the authorities, making its purpose unclear to auditors. The Office of the President received D20 million to cover expenses related to cabinet sittings, and another D1,939,922 was transferred to the Office of the President for travel expenses. On July 3, 2025, D120 million was vired, again with no explanation for the expenditure provided, adding to the list of unexplained transactions.
The National Human Rights Commission (NHRC) received D1,177,300 to prepare the TRRC White Paper. The Ministry of Foreign Affairs was allocated D494,508 for the Turkey Embassy to cover accommodation for the Vice President and delegation during a transit stop at Istanbul airport, en route to the Tokyo International Conference. Further irregular transactions include D30 million vired on November 14, 2025, and D10 million vired on November 25, 2025; both amounts lacked provided approval, noting a pattern of unapproved disbursements.
Legal and Regulatory Context
D329,505,582 was vired from the Contingency Fund to finance routine budgeted activities, travels, trainings, and supplier payments, according to the National Audit Office. Parliamentary consideration was not carried out for the use of this D329,505,582, a direct violation of constitutional requirements. The 2016 Financial Regulations specify that "where the circumstances are such that expenditures cannot be postponed pending consideration by the National Assembly, application may be made to the Minister for an advance from the Civil Contingency Fund to cover recurrent expenditure." This stipulation outlines the strict conditions under which such advances are permissible. On December 3, 2025, D500,000 was also vired, but approval for this transaction was not provided, further demonstrating a disregard for established financial controls and accountability.