Senior civil servants who failed to comply with financial rules during the TCD construction project should be fined, according to Auditor General Heather Jacobs Matthews. She wants sanctions imposed on the public officers who she concluded did not ensure "effective and efficient use" of taxpayers' cash during the development of the new TCD building and three emissions testing centres.

But Finance Minister Paula Cox — who has power to "surcharge" Government employees responsible for the improper payment of public funds or for any payment not "duly vouched" — would not commit to such a course of action last night. "I would anticipate that any financial penalty and/or sanction levied by any future administration will depend on the circumstances and the degree of culpability," said the Deputy Premier. "I would not expect there would be a 'one-size-fits-all' approach."

A special report released by Ms Matthews last week revealed a $10 million overspend on the TCD project, ministerial interference from the outset and a "lack of accountability and a general disregard for established policies and procedures in the use of public funds".

The Auditor General said yesterday that the ministerial interference she uncovered came solely from Transport Minister Ewart Brown, whose Ministry took responsibility for the development.

Premier Dr. Brown described her report as "inaccurate" at the weekend.

Ms Matthews told The Royal Gazette: "My report concluded that senior civil servants failed to manage the project in accordance with established rules and procedures i.e. Financial Instructions.

"My report indicated that there are surcharges and penalties in place when Financial Instructions are not followed. However, there is and always has been a reluctance to implement these surcharges and penalties.

"This is where the required accountability in the use of public funds breaks down and this is clearly the case, as highlighted in this special report. We must first fix the problem within the Civil Service by holding civil servants accountable for their actions.

"If these penalties and surcharges are implemented, the likelihood of irregular and or fraudulent activity — whether internally or externally — would diminish."

Ms Matthews would not comment on whether she found evidence of fraudulent activity during her probe — or whether she passed her findings to Police, as called for by Shadow Attorney General Trevor Moniz.

Police have not responded to a request for comment. Ms Matthews said: "The public can rest assured that when such activity is detected and confirmed by this office, the matter is immediately referred by me to the Police for further investigation."

Ms Matthews said she was encouraged that the Finance Minister had responded to her report with a pledge to strengthen sanctions against non-compliant senior civil servants.

"However," she added: "I do expect that these sanctions and penalties will be enforced, with immediate effect and retroactively."

Ms Cox can impose a surcharge for an unlimited amount, which is recoverable from a civil servant's salary or in Magistrates' Court as a debt.

Government's Financial Instructions also allow for penalties to be determined by the Accountant General.

Ms Cox said that while prospective and retrospective sanctions may be technically possible "the better view is that retroactive laws are not generally viewed as constitutionally appropriate".

She said her Ministry was already proceeding with the recommendations of a leading public accounting firm to improve governance measures for all capital projects and was working on producing "one authoritative document" on how such projects should be managed.

Cabinet Secretary Marc Telemaque said accountability at all levels was "the goal of the public service".

He said the Auditor General's overriding recommendation that civil servants follow the rules was "consistent with the work ethic demanded of and by senior managers within the public service".

Accountant General Joyce Hayward is out of office until later this week so could not be reached for comment.