MEMBERS OF Parliament's Public Accounts Committee (PAC) expressed shock yesterday, on learning of gaping holes in the Inland Revenue Department (IRD) systems which had been exploited for corrupt purposes by employees.

Adjectives such as "frightening", "disturbing" and "perturbing" rolled off the tongues of committee members and at least one technocrat vowed that action would be taken to address the shortcomings.

The issues that troubled committee members included the registration of vehicles using fictitious insurance companies, the registration of vehicles without insurance, the use of one insurance certificate in the registration of 183 motor vehicles for different drivers and the use of one customs entry number for different importers of motor vehicles.

Committee Chairman Dr Omar Davies said it was regrettable that discussion on these issues was taking place in public.

"The average law-abiding car owner is proceeding under a false impression that all of the bureaucracy he or she goes through is meant to protect you but, in fact, there may be persons out there carrying similar papers and documentation," he said during yesterday's sitting of the PAC.

No prior knowledge

Deputy Financial Secretary Rolda Grey told committee members that she was hearing about some of the activities for the first time.

"I have noted the concerns and, as soon as I get back to the office, I am going to be sending out directives and when the FS (financial secretary) comes back, she will be apprised and the relevant corrections will have to be followed," she said.

An audit of the IRD by the Auditor General's Department for financial year ended March 2008 uncovered 211 vehicles that were registered by the department despite the use of illegitimate insurance companies.

Committee member Dr Morais Guy questioned why Inland Revenue was not able to identify the phantom insurance companies that were presented for registration of motor vehicles.

Unable to modify info

Auditor General Pamela Monroe-Ellis told the PAC that prior to recent changes at the IRD, cashiers were able to modify information.

Senior Business Analyst with Fiscal Services Andrea Nelson-Jones said the names of "unusual insurance companies" could no longer be entered on the system by cashiers. She said only the systems administrator could make such an entry.

Davies questioned whether Inland Revenue could identify fictitious entities that were registered and trace the illegal activity to a member of staff.

Former Commissioner of Inland Revenue and Commissioner General Designate of Tax Administration Viralee Latibeaudiere said this could be done through an audit. This found favour with the committee which asked that the audit be carried out.