The 2014 audit report, which appeared on GT Mosquito in draft format, spells out instances where the company paid for goods and equipment in 2011 and 2012 but two years later in 2014, those items were yet to be delivered.
“The financial statement reflected an amount of $69.454M for Goods in transit as at 31 December 2013…however, at the time of the audit for 2013 in September 2014, the equipment were not yet received from the suppliers nor were a refund made to the Company,” the report stated.
Notably, included in this figure are amounts of US$33,550 (G$6,890,415) and US$2,349 (G$485,069) representing payments to overseas suppliers for the supply of equipment in August 2011 and December 2012 respectively.
“Further audit examination revealed that overseas supplier for the amount of US$33,550 ($6,890,415) has since gone bankrupt. At the time of audit in June 2015, this matter was still not resolved.”
It was also revealed that there are some 1,182 customers with outstanding balances totaling $224.620M as at 31 December 2014. The audit revealed that these customers had no credit approval from the authorizing officer.
Customers with credit approval totaled 69, with 20 having outstanding balances.
“20 customers with a total credit limit of $9.480M were allowed credit totalling $14.266M. As a result, the credit limit of the 20 customers was exceeded by $4.786M. Further, four of the customers in question were allowed to exceed their credit limits by more than double the amount authorized,” the report noted.