The Auditor General S. Swarnajothi has revealed serious shortcomings in financial administration of the three armed forces and police.

Although the armed forces and police had performed exceptionally well on the battle-field the same couldn’t be said about their financial administration, according to the AG’s findings.

While acknowledging success achieved by the armed forces and police in 2007, Swarnajothi has pointed out a series of irregularities in his annual report sent to Parliament late last year.

The AG has also found fault with Police Department for failing to furnish accounts in respect of Police Reward Fund. He also revealed that Rs. 58 million ought to have credited to the state revenue in terms of Financial Regulations had been deposited in accounts belonging to the army, navy and the police.

For want of proper records of fixed assets, the armed forces and police hadn’t been able to maintain overall fixed asset control, he said, adding that annual boards of survey, too, hadn’t been carried out.

The AG also revealed an overpayment of Rs. 34 million in respect of supplies of fresh rations to the army and a stock shortage amounting to Rs. 11 million revealed in a test audit examination on the issuing of rations.

But nothing could be as revealing as the navy paying a sum of Rs. 42 million as interest due to delay in obtaining funds from the General Treasury for the Letters of Credit amounting to Rs. 2,380 million opened in favour of foreign suppliers.