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One Billion Dinars with No Social Impact: Financial and Administrative Irregularities Hit the Social Solidarity Fund and Disrupt Pension Payments
An Audit Bureau report for 2024 revealed a series of financial and administrative observations and violations at the General Authority of the Social Solidarity Fund. The most notable include delays in preparing the final accounts for the fiscal year under review to date, and the failure to close financial advances granted to employees within the prescribed deadlines.The report explained that the Finance Department charged travel and overnight allowances directly to the foreign travel and accommodation expenses item, instead of routing them through the travel and accommodation allowance advance account, in violation of approved procedures.
According to the data, total authorized allocations amounted to approximately one billion dinars, while expenditures and commitments reached 407.8 million dinars.Total social assistance amounted to 52 million dinars, distributed between cash and in-kind aid. However, the report noted a lack of fairness in distribution among the Authority’s branches, with allocation decisions made solely by the General Administration, and the absence of a central system to register beneficiaries’ data using national ID numbers—potentially leading to duplication or repeated disbursements.
The report also indicated that rental allocations reached two million dinars, against actual expenditures of 1.8 million dinars, with branches relying on renting headquarters, offices, and warehouses instead of purchasing properties or constructing buildings owned by the Authority.In addition, allocations for building equipment reached 35 million dinars, while projects included in the plan amounted to 100 million dinars.The report recorded the purchase of vehicles from the solidarity budget designated for beneficiaries’ needs, which were instead allocated for administrative or personal use, contrary to the objectives of the approved budget.It further showed weak performance by the Projects Department and supporting departments in implementing approved projects, as spending on projects included in the plan did not exceed 15.3 million dinars, compared to allocations of 100 million dinars.
On the revenue side, the report observed a low collection rate of solidarity contributions at just 1%, with negative variances amounting to 14.7 million dinars—equivalent to 13% of total estimated revenues—reflecting a significant shortfall in actual collections.In addition, uncollected revenues related to the basic pension amounted to 155 million dinars, representing the jihad tax due from the Ministry of Finance at a rate of 30%, which negatively affects the Authority’s ability to pay basic pensions to eligible beneficiaries.