Audit Finds $4.6 Million in Losses at Belmopan City Council Under Former Administration

The findings of an independent audit into the finances of the Belmopan City Council during the administration of former Mayor Khalid Belisle have revealed what city officials say amounted to more than four-point-six million dollars in losses to the municipality.  The audit, which examined the period between 2015 and 2021, identified several major red flags, including the unauthorized sale of infrastructure lands without formal council approval, unrecorded revenues linked to unsubstantiated trade-offs and set-offs against ratepayer accounts, and concerns surrounding millions of dollars in liabilities connected to the InnovaBel land acquisition project.  According to the auditor’s reports, the transactions were so significant and widespread that they affected the overall reliability of the council’s financial statements. The reports further noted deficiencies in internal controls, governance procedures, supporting documentation, and approval processes for key transactions.  According to the audit reports, adverse opinions were issued for each of the fiscal years reviewed. Auditors concluded that the issues were so material and pervasive that the financial statements failed to fairly present the council’s financial position.  Belmopan City Council Financial Director Flavio Tzalam told attendees that the audit findings suggest the council incurred losses during the years under review. 

Flavio Tzalam, Financial Director, Belmopan City Council: “It is due to pervasive and systemic failures in governance, financial management, internal controls and adherence to legal requirements. Key findings InnovaBel Land Transactions potential loss, 319,000. Other land sales, buffers, potential loss, $2.9 million. Trade off transactions, potential loss, 514,000. Other set off potential loss, 850,000. Suspicious timing and potential misconduct. In aggregate, the finance indicate a period marked by significant financial mismanagement, potential losses exceeding $4.6 million. A disregard for fundamental principles of public administration and fiduciary responsibility and severe internal control deficiencies. The operational environment facilitated the potential for abuse and resulted in considerable financial and reputational risk for the Belmopan City Council. This is only an extract of the auditor’s report.”

The findings were presented Thursday night during a public meeting where Belmopan City Council Financial Director Flavio Tzalam outlined the conclusions reached by independent auditor and Certified Public Accountant Cedric Flowers.  He added that work is continuing on independent audits covering the administration of former Mayor Sheran Palacio and the first two years of former Mayor Pablo Cawich, with those reports expected to be completed before the end of this year