National Audit Office Warns LESA On Over €18 Million In Uncollected Fines
The National Audit Office (NAO) has called out LESA, over a significant backlog in its financial statements.
The NAO has warned LESA to sort out its financial matters due to the accumulation of uncollected fines and penalties amounting to €18.1 million.
LESA has been criticised for an “unacceptable” delay in publishing its financial records, with six years’ worth of audited financial statements still outstanding.
The Home Affairs Minister, Byron Camilleri, oversees LESA, which was previously warned in 2019 about the necessity of timely preparation of financial statements. However, the latest audit conducted this year indicates no progress.
CEO Svetlick Flores acknowledged this failure to improve, according to the auditor general’s report.
Plans to appoint a full-time financial controller have been announced, but the position remains vacant. The auditor general emphasized that LESA should resolve its financial issues as soon as a financial controller comes on board.
The audit revealed an alarming €18.1 million in uncollected fines and penalties. The report urged for a solid strategy concerning the collection of these pending debts.
LESA’s approach to debt collection was found to be “quite lenient”, and in several instances, the final payment notices weren’t even sent to the right addresses, making it highly likely that the debtor never received the final warning. This could result in the debts remaining uncollected.
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