Taxpayers’ cash was blown at Victoria’s Secret and other shops as more than $20 million of National Drug Commission funds was spent with no accountability, according to the Auditor General.

Ninety credit card transactions – totalling $13,000 – were deemed suspect by Larry Dennis, with almost all of them not recorded in the Commission’s accounts book.

And the NDC’s executive secretary fraudulently secured $3,290 for airfares for her relatives in the year ending March 2005, Mr. Dennis revealed in his annual report for 2007/08 released yesterday.

Meanwhile in 2005 somebody used NDC cash to buy a Sony laptop which is now nowhere to be seen — with the same individual allowed to request, authorise and receive assets in the Department.

In his final annual report before retiring, Mr. Dennis gave a damning assessment of the NDC and called for Government to ask for a Police investigation into its affairs.

Referring to credit card transactions in the year ending March 2005, he stated:”Many were charges to vendors that provide goods or services not normally used by the Commission, e.g. Victoria’s Secret.

”For half of all credit card payments, no statements or other valid documentation could be provided to substantiate their validity. Many of the same problems persisted throughout the period ended February 2006. Several credit card charges appear to be personal rather than business related.

”In addition, throughout the two years most credit card bills were paid late resulting in substantial late fees and finance charges.

”As of the date of this report, the Department for National Drug Control had not identified nor attempted to recover credit card charges that were personal in nature.”Mr. Dennis said that for several years after 2003, NDC management could not or would not provide accounting records for audit.

”When records were eventually made available, they were found to be unbalanced, incomplete, unsupported and generally inadequate,” he wrote.

”Audits also revealed an almost total absence of internal and accounting controls, and board oversight.

”Whether this was due to managerial incompetence, or a purposeful unwillingness to maintain proper books of account, or an attempt to conceal improper conduct, is unclear.

”Mr. Dennis issued denials of opinion for every year from 2003 to 2006 inclusive, saying deficiencies in accounting records were so pervasive it was impossible for him to express an opinion.

He described this as a “very, very serious situation”, explaining:: ”The total over the five years equals $20.2 million that were expended out of public funds without any accountability.

”Pointing to a “considerable potential for fraud” in the department, Mr. Dennis said:: ”The Commission’s administrative officer had access to unused cheques, monies received, bank statements, returned cheques, purchase orders and, as well, was responsible for recording transactions in the accounting records.

”In addition, several employees often prepared purchase orders, received the goods and approved the related invoices for payment.

”With this combination of duties, the people involved could easily commit and conceal fraud or, alternatively, would be the prime suspect if someone else committed a fraud in those areas."

Other findings included:

● no receipts for travelling expenses;

● recommendations from a $12,000 consultant’s report on accounting controls were largely ignored;

● the Commission does not know if the grants it disbursed were used appropriately.Mr. Dennis said the Commission was dissolved in February 2006 with the understanding that its management would remain accountable for its affairs prior to that date.

He concluded: ”There now appears to be ample evidence for the Ministry of Culture and Social Rehabilitation to begin holding senior management and board members accountable.

”A Police investigation should be launched and the Permanent Secretary of Culture and Social Rehabilitation should make a complaint against those parties responsible for the proper control and expenditure of public monies, assuming the findings will support it.”