Public Accounts Committee to refer Wales Audit Office evidence to police
29 March 2011
Evidence gathered during a National Assembly for Wales inquiry into the conduct of the Wales Audit Office whilst under the leadership of the former Auditor General Mr Jeremy Colman, will be handed to police for further investigation.
The Public Accounts Committee found the then Auditor General for Wales had fallen far below standards expected of a high-ranking public official with regards to his conduct and management of the Audit Office between 2005 and 2009.
A new report claims the Committee had been misled about the true financial picture of the Wales Audit Office by the former Auditor General, Mr Colman, and in particular the proper disclosure of early severance packages in the annual accounts.
Had it done so, the Wales Audit Office would have showed a significant overspend in its accounts over the previous five years. As it was, the size of the overspend didn’t come to light until recently and the National Audit Office was asked to investigate.
Its resultant report was critical of the Wales Audit Office for not meeting the established accountancy standards expected of a public body.
“It is with great regret that we have had to consider these matters and we believe they are largely due to the actions of one person who decided the high standards and expectation required for the position of Auditor General did not apply to him,” said Darren Millar AM, Chair of the Public Accounts Committee.
“The reputation of the Wales Audit Office, a body charged with ensuring value for public money, has been severely damaged and it is to the credit of the present Auditor General, Huw Vaughan Thomas, that he is tackling these painful problems head-on in order to restore public confidence.
“My committee colleagues and I believe that a question remains as to whether aspects of Mr Colman’s conduct could be considered criminal and that this question will remain unanswered unless an appropriate authority reviews the evidence we’ve received. That is why we will take the serious step of referring our report to South Wales Police for further consideration.”
“We have also recommended more stringent and formal accounting procedures for the Wales Audit Office to follow and that the Auditor General demonstrates how the significant overspend uncovered in previous accounts will be accounted for.”
“We hope that this report starts to draw a line under the accounting, governance and propriety concerns that developed during Mr Colman’s term of office and that were brought to light over the past year.”
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