*** Secret loans, soaring deficit spark alarm in audit report | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Secret loans, soaring deficit spark alarm in audit report

TDT | Manama

Email: mail@newsofbahrain.com

Ministries and stateowned bodies in Bahrain took out nearly BD4 billion in unrecorded loans last year, as the national budget deficit ballooned to BD774 million — more than four times the previous year — acc o r d i n g to the National Audit Office’s 2024 annual report.

The findings, set to be debated in Parliament next Tuesday, are part of the 66th report by the Financial and Economic Affairs Committee. The report paints a troubling picture of financial mismanagement, weak oversight, and widespread rule-breaking across government entities.

The audit shows Bahrain’s public debt rose by 7% to BD17.9 billion in 2023. However, this figure does not include BD3.9 billion in loans taken by ministries and government bodies that were never added to the official debt register.

BD47 million unaccounted

Other concerns raised include the failure of some agencies to transfer fees and earnings to the state treasury, resulting in nearly BD47 million going unaccounted for. Meanwhile, government spending continued to rise — ordinary expenses climbed 6% to BD3.69 billion, and project spending jumped 19% to BD277 million — while oil revenue fell 16%, dragging total income down to BD3.2 billion.

Serious lapses @ Gulf Air

The audit reviewed 85 government entities. Gulf Air was singled out for repeated operational losses and failure to meet its targets in 2022 and 2023. On one day alone, it cancelled 178 flights due to low profitability. The committee noted serious lapses in how the airline tracked ticket sales via partners, and failures to list flights online, missing out on potential revenue.

Bapco bypasses approval

Bapco Energies, the stateowned energy group, was also criticised for bypassing required approvals, altering contract terms mid-way, and skipping key paperwork. One price change added BD95,000 to a deal, while other errors included ordering stock it already had and not cancelling unused orders.

Mismanagement @ Sunni Waqf

At the Sunni Waqf Directorate, investigators found long-vacant properties, rent arrears left uncollected, and leases not updated in decades. In one case, an idle property cost the state BD159,000 in lost rent.

Delayed care @ hospitals

The audit also highlighted long waiting times in public hospitals, with some patients waiting three to eight months for specialist care. Meanwhile, annual spending on treatment abroad remained high, averaging BD14 million over the past four years. The National Health Regulatory Authority came under fire for allowing foreign workers into roles reserved for Bahrainis and applying rules inconsistently.

Political societies were also under scrutiny. Out of 12 groups, 10 were examined, and one was found to have violated regulations. Just 38% of earlier recommendations in this area were fully followed.

1,010 recommendations

The report contains 1,010 recommendations, of which nearly 85% were being acted on or already in progress during the initial review. A later follow-up found that 90.3% had been taken up or were underway.

The parliamentary committee, which held 12 meetings and spoke to a wide range of officials, said several government bodies, including the Interior Ministry, the Customs Directorate, the National Ambulance Centre and the National Revenue Office, failed to respond to requests for information.