The National Institute of Social Action (INAS) denies misappropriation of Covid-19 funds
The National Institute of Social Action (INAS) has refuted allegations of misappropriation of funds allocated for Covid-19 combat, as reported by the Administrative Court. INAS clarified that the funds were distributed to its regional delegations according to the internal regulations.
“There was no misappropriation of funds, and it is clarified that the amount of 1.7 billion meticais was allocated for the payment of subsidies to households, with the actual disbursement carried out through the delegations of the National Institute of Social Action (INAS), in accordance with the government's plan,” states the document.
“Furthermore, the central agency does not make beneficiary payments, as this activity is the responsibility of the delegations, which are independent budget units,” INAS responded in a statement addressing inquiries from the newspaper O País.
In the audit report, the Administrative Court mentioned it had identified issues distorting the financial statements of funds disbursed for Covid-19 prevention and mitigation during the 2021 fiscal year.
The report, sent to the government, noted that INAS, a public institution overseen by the Ministry of Gender, Child, and Social Action, incurred expenses amounting to approximately 1.71 billion meticais. This expenditure lacked evidence of the services contracted, constituting a misappropriation of funds.
“Auditing the financial execution of Covid-19 funds requires a prior understanding of the sector's intervention plan, its scope, and the context in which the country was operating at the time of the respective expenditures, as well as an understanding of the established internal control system. The examination of financial statements must consider these elements to ensure that the opinion accurately reflects the facts,” INAS explained in its statement.
This response from INAS came after Gender, Child, and Social Action Minister Nyeleti Mondlane, on Saturday, denied any misappropriation of funds by INAS.
“It was a new experience for the sector, and the sector has its rules. The Covid-19 emergency demanded rapid action. So, in some cases, our staff went to the field, registered vulnerable families, and made the payments(…) we have already responded to the appropriate authority, which is the Ministry of Economy and Finance,” Nyeleti Mondlane added.
