Audit Bureau Reveals Loss-Making Companies, One Records Losses Of 236% Of Capital

(MENAFN- Amman Net) The 2024 Annual Report of the Jordanian Audit Bureau revealed that 13 companies incurred losses during the fiscal year ending 31 December 2024, totaling JOD 487,439,478. The report highlighted the main loss-making companies as follows:

• National Electric Power Company: JOD 427,794,038, representing 87.8% of total losses
• Yarmouk Water Company (unaudited draft figures): JOD 43,374,925, 8.9%
• Royal Jordanian Airlines: JOD 4,252,000, 0.9%
• Aqaba Railway Corporation: JOD 3,247,944, 0.7%
• Other companies: JOD 8,770,571, 1.7%

The report also pointed out that the Garment Design and Training Services Center recorded losses equal to 236% of its 2022 capital without taking the necessary corrective measures, in violation of Article 75(b) of the Jordanian Companies Law. Additionally, it raised questions over Jordan Water Company's 2024 estimated financial surpluses despite accumulated losses at the end of 2022 and 2023.

The 2024 report documented financial savings of JOD 22.3 million resulting from 123,369 audit tasks, totaling 444,766 work hours executed by 294 auditors, distributed as follows: 49% for post-audit, 24% for follow-up, 15% for committee participation, 9% for pre-audit, and 3% for spot checks.

Audit Bureau President Rady Al-Hammadin stated Tuesday that 38 engineers completed 11,050 technical and engineering audit tasks. The 73rd annual report adopts a new communication approach focused on transparency, impact measurement, simplified presentation, and readability, presenting audit and oversight results of the executive branch to strengthen the integration of authorities and reinforce integrity, transparency, and accountability.

The report noted that 115 audit outputs were issued during 2024, with a 59% response rate compared to 48% in 2023 and 21% in 2022, reflecting the effectiveness of the new audit approach. There was a significant improvement in government ministries and departments' responses, with audit observations falling to 512 in 2024 from 2,156 in 2023, of which 270 violations were corrected. Independent institutions saw a sharp drop to 82 observations from 558, with 58 violations rectified.

Local administration showed major improvements, correcting 225 of 359 audit observations in 2024 versus 970 in 2023. Government-owned companies reduced observations to 69 from 1,059, correcting 43 violations. This decline was attributed to enhanced compliance and early correction of violations before final audit outputs through active discussion and development of internal audit units.

Regarding performance development, the Bureau evaluated 166 internal audit units as part of a project that accounted for 10% of audit effort and established improvement plans for 2025, while training 612 staff across 162 government entities.

The Audit Bureau continued as the sole authority for auditing loans and grants, issuing 33 audit reports in 2024 and auditing budgets of 35 political parties.

In terms of violations, the report documented 1,078 violations within 115 audit outputs and 3,279 violations in 1,003 review memos, resulting in 11 cases referred to the judiciary, 8 to the Integrity and Anti-Corruption Commission, 46 cost recovery decisions, and 41 immediate collection orders.

Citizen engagement included 435 complaints in 2024, yielding 15 audit outputs or 13% of total outputs, compared to 486 in 2023 and 289 in 2022, reflecting growing public trust in the Bureau's oversight role.

Al-Hammadin emphasized that the 2024 report, structured in four main parts, focuses on performance auditing, impact measurement, and value-for-money concepts. The next phase will prioritize monitoring audit outputs and accelerating corrections to enhance overall performance and public fund management.

The report was delivered to Prime Minister Jafar Hassan by Rady Al-Hammadin at the Prime Ministry, with Hassan praising the Bureau's efforts in strengthening oversight and pledging government support for timely correction of violations. Al-Hammadin affirmed that the new methodology aims to reinforce preventive auditing, reduce violations, and uphold integrity.

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