Coffee industry fails to submit statement


Coffee Industry Corporation Ltd, a Government-funded company that is tasked with the development of the coffee industry, has not submitted financial statements for 2014, 2015 and 2016 to the Auditor-General’s Office, according to the Auditor-General’s Report for 2016.
The Auditor-General’s check of the 2013 financial statement found much to be desired and of CIC’s non-compliance of the Companies’ Act.
“The company was not able to prepare an annual report with signed financial statements five months after the balance sheet dated Dec 31, 2013, as required under sections 179 and 209 of the Companies’ Act,” Auditor-General Philip Nauga said.
“I brought this to the attention of the management and it responded, ‘as recommended, CICL will prepare all its annual financial statements and other statutory reports in accordance with PNG Companies’ Act requirements’.
“I was not provided with the copies of annual returns lodged with the Registrar of Companies.
“As per the Companies’ extract dated June 28, 2016, the last annual returns lodged was up to Aug 23, 2007.
“I was unable to establish whether annual returns for 2008 to 2015 were prepared and lodged as required under Section 2015 of the Companies’ Act.
“I brought this to the attention of the management and it responded that ‘the office of the company secretary of CICL is currently updating in relation to lodgements of annual returns with the Registrar of Companies’.
“At the time of preparing this report, the financial statements of the corporation for the years ended Dec 31, 2014, 2015 and 2016 had not been submitted for my inspection and audit.”
The report found:

  • The corporation’s senior officers were paid accommodation and motor vehicle allowances without being taxed;
  • group tax owed to the Internal Revenue Commission was K1,503,326;
  • internal control procedures over inventories was inadequate;
  • coffee export levy collection was not gazetted;
  • goods and services tax applied on the coffee export levy was below the approved 10 per cent as per GST Act 2003; and,
  • Personnel files of the corporation were not maintained adequately to determine their liability on time.