PERFORMANCE AUDIT – GOVERNMENT TRANSPORT

The Report on ‘Government Transport' has been submitted to the Honourable Speaker for presentation in the House of Representatives in accordance with sub-paragraph 8(b) of the First Schedule of the Auditor General and the National Audit Office Act, 1997.

This study sought to highlight relevant aspects of the way an important segment of Government activity is managed on a day-to-day basis. Examination of procedures used by Government departments has indicated inefficiencies in transport related areas. Although the audit focused on period 1997/1998, where possible the report was updated to reflect developments.

The transport fleet is made up of Government-owned vehicles, hired vehicles, and vehicles pertaining to the former Impressed system. This study focussed on a total of 1740 vehicles. The transport budget allocation amounts to about Lm5 million annually, but excludes overheads. The objectives and scope of this audit was concerned with about half of the transport fund allocation.

National Audit Office established benchmarks indicate that the fleet's utility rate is low. This suggests that either department has more vehicles at its disposal than required or that vehicles are being used inefficiently.

Fleet performance is diminished through non-compliance with regulations. Lack of enforcement of regulations impinged negatively on internal controls and minimised management information as inadequate record keeping prevailed. Consequently, accountability of transport providers and users is diminished.

A physical and mechanical inspection on a sample of Government-owned vehicles revealed that the level of maintenance was generally below what is now being expected of private vehicles. Significant expenditure was required to bring the current fleet up to acceptable VRT levels. The non-existence of a maintenance policy and to the period that a vehicle is retained in the fleet is resulting in increased costs and operational inefficiency.

Government has a number of units performing in-house maintenance. The report highlights problems relating to overstaffing in these garages and the lack of tools required in modern workshops. Despite these maintenance units, Government-owned cars are not totally maintained in-house. In view of the foregoing, the Government garage system requires a radical rethinking.

The Impressed system was wound-up during 2000. During the course of this audit practices relating to the management of the Impressed system were considered to be unsustainable.

This review identified various issues which diminished value-for-money considerations and impinged on the effectiveness of Transport related internal controls. The report points to issues which call for immediate attention.

The NAO proposed recommendations aimed at enhancing the economy, efficiency and effectiveness of the transport function. The main proposals were:

• updating of regulations to reflect current circumstances

• reviewing of in-house maintenance practices

• introducing modern technology to facilitate fleet management

• organising transport co-operatives.