A forensic audit of the public sector has identified P33 billion in contracts, payments and assets exposed to suspected irregularities over a ten-year period.
The figure, described as a “value-at-risk” measure, captures spending linked to serious governance, procurement and financial control weaknesses across 30 audited institutions.
The audit, commissioned by the government and conducted between 2025 and 2026, reviewed ministries, state-owned enterprises and regulatory bodies. It found more than 800 control failures, of which 72% were classified as high or very high severity. These included suspected fraud, corruption, weak oversight structures and systemic breakdowns in procurement and financial management.
Of a total P160 billion flagged, an estimated P33 billion represents indicative loss or damage. This figure is preliminary and reflects potential overpricing, unsupported payments, non-delivery and other forms of financial exposure.
Of a total P160 billion flagged, an estimated P33 billion represents indicative loss or damage. This figure is preliminary and reflects potential overpricing, unsupported payments, non-delivery and other forms of financial exposure. The report notes that the total value at risk does not equate to confirmed losses but indicates the scale of funds subjected to irregular processes.
The most serious matters were escalated through 80 special investigation referrals spanning 26 of the 30 audits. These cases involve more than 80 current and former senior officials and over 150 contractors and counterparties. The referrals are supported by evidential material intended for further investigation, asset tracing and possible legal action.
The audit also identified operational and financial management weaknesses, including stalled projects, underutilised assets, poor budget discipline and weak controls over public funds. In several cases, incomplete records and unreliable systems limited the ability to verify transactions or track decision-making processes.
Procurement accounted for the largest share of findings, followed by governance. Common issues included non-competitive tendering, direct awards, contract variations without adequate justification and weak oversight of supplier selection. Governance failures included ineffective boards, limited internal audit influence and weak accountability mechanisms.
The audit also identified operational and financial management weaknesses, including stalled projects, underutilised assets, poor budget discipline and weak controls over public funds. In several cases, incomplete records and unreliable systems limited the ability to verify transactions or track decision-making processes.
The findings point to recurring patterns across institutions and sectors. Similar control failures were observed in procurement processes, financial management and oversight structures over the review period from 2014 to 2024. The report attributes these patterns to systemic factors, including weak oversight mechanisms, ineffective control institutions and vulnerabilities in procurement systems.
The audit produced 686 recommendations, including priority actions related to investigations and structural reforms. It also outlines the need for centralised tracking, evidence-based verification and coordinated implementation across public institutions.
The government has indicated that the findings will inform further investigations, recovery efforts and institutional reforms.
