No new word after $20M overspend audit

Governor Daniel Pruce says he has nothing new to share publicly regarding the government’s $20 million salary overspend, as follow-up work stemming from the Auditor General’s report remains ongoing.

Responding to questions at a recent press conference, Pruce confirmed that he had sought additional information from both the Deputy Governor’s Office and the Ministry of Finance in light of recommendations made in the Auditor General’s report into the 2024 salary increases.

“In the light of that direction, I have reached out to both the Deputy Governor’s Office and the Ministry of Finance for additional information,” Pruce stated.

He added that the requested material has since been submitted and is under review. “Additional information has been provided, which I’ve been considering since then,” Pruce said.

However, he indicated that no conclusions have yet been made public. “When we get to a point where there’s anything for me to share publicly about that, I will do so. But for the moment, that follow-up work is still in train,” he told reporters.

Premier Dr Natalio Wheatley told lawmakers in 2024 that the issue stemmed from a new salary structure introduced that year, with the 2023 Appropriation Act allocating $11.7 million for it. However, the Ministry of Finance found a substantial gap between the budgeted and actual required amounts.

The Auditor General’s report, released last September, examined an overspend of more than $20 million linked to public officers’ salary increases. The report recommended that further information be sought from the Ministry of Finance and the Deputy Governor’s Office to clarify aspects of the cost estimates presented during the budget process.

The report showed that there were indications that the implementation cost would be substantially higher than the consultants’ estimates, but this information was not presented when the decision was brought before the Cabinet.

In the wake of the discrepancy, the government announced a hiring freeze and imposed travel restrictions across the public service as part of cost-containment measures. However, it is unclear whether those measures, announced while the administration investigated the salary discrepancy, were ever introduced.

At the press conference, Pruce did not provide a timeline for completing his review of the additional submissions, nor did he indicate whether further action would follow. He maintained that any update would be shared once the process reaches a stage suitable for public disclosure.