Showing posts with label Auditor General. Show all posts
Showing posts with label Auditor General. Show all posts
Thursday, August 16, 2012
GRA officials in yet another bribery scam - telephone company implicated
Secret deals seems to be the thing of the day as We learn of yet another series of secret deals between GRA officials and persons from the private sector. Millions of dollars are being spent every year on paying off the customs officials. Based on our reports from one ex-customs officer, the largest payoffs came from a telephone company and a hardware store. In this first expose, we will deal with the overall accusations.
The telephone company under the microscope recently fired its chief financial officer for "conflict of interest" without disclosing what those conflicts were. We are left to wonder if the CFO was involved in this scandal and would like to talk with Mr. Rachpaul (Mr. Rachpaul, if you read this, please contact us on corruptionexpos_e@hotmail.com.
Joe Singh's emergence, as M. Maxwell questions in the Stabroek News, indicates another clear conflict of interest. However, Joe Singh was being paid off by ATN to sit at the office of the president to influence the Government's action (or inaction) on the legislation and so his conflict is obviously not in the same class as the CFO's. It was during Singh's years that the telephone company paid over 20 million dollars (per year), that's $20,000,000 in bribes to GRA officials to allow its goods to avoid detection. The ex-customs officer said that GT&T cannot produce any record of their payments to GRA, since it was all paid as bribes.
It seems that the CEO's of GT&T have a history of such dealings since it is public information about the foreign exchange deals that were done by the former CEO, Jagan (current CFO). It was also under CEO Jagan's so called “guard” that a few of the Government's properties were sold for cash. These Government properties were claimed by GT&T to be their own, so they sold it off (where was Brassington??). This deal had also included the payment of this ex-GRA officer.
Monday, July 30, 2012
Is there an explicit conflict of interest in Ms Gitanjali Singh’s case?
by E.A.B John (Stabroek News, JUly 30,2012)
Dear Editor,
After reading and re-reading Mr Anand Goolsarran’s carefully crafted letter to SN, Sunday, July 22, one feels compelled to make some observations, even though they relate to what may be regarded as (minor) details.
The actual records will reveal the following:
After reading and re-reading Mr Anand Goolsarran’s carefully crafted letter to SN, Sunday, July 22, one feels compelled to make some observations, even though they relate to what may be regarded as (minor) details.
The actual records will reveal the following:
i) Ms Geetanjali Singh’s actual qualifications include the ACCA and Master’s Degree in Public Policy and Management.
ii) She rejoined the Office of the Auditor General in 2002. At 2005 her position was Assistant Auditor General.
iii) In the year 2005 the respective incumbents were as follows: Auditor General (ag) – Balraj Balram; Deputy Auditor General (ag) – Deodat Sharma.
ii) She rejoined the Office of the Auditor General in 2002. At 2005 her position was Assistant Auditor General.
iii) In the year 2005 the respective incumbents were as follows: Auditor General (ag) – Balraj Balram; Deputy Auditor General (ag) – Deodat Sharma.
The first demitted office. His replacement was Mr Sharma and Ms Donna Ellis was appointed to act in the latter’s position.
2005 was the year arrangements were made to reorganise the Audit Office, following its transition from a regular budget agency to a constitutional entity reporting to Parliament via the Public Accounts Committee. The new organisation structure was formally approved by Parliament. The posts of Senior Deputy, Deputy and Assistant Auditor General were deleted from the structure.
The reorganisation structure included the following specific auditing components:
2005 was the year arrangements were made to reorganise the Audit Office, following its transition from a regular budget agency to a constitutional entity reporting to Parliament via the Public Accounts Committee. The new organisation structure was formally approved by Parliament. The posts of Senior Deputy, Deputy and Assistant Auditor General were deleted from the structure.
The reorganisation structure included the following specific auditing components:
Mr Goolsarran may not have been aware that the new structure which was instituted included the deliberate assignment of specific groups of auditees to the respective Directors (3), to each of whom an Audit Manager reported. (So it could not have been any recent accommodation of the Auditor General (ag)). From 2006 therefore the regulatory framework provided for the senior management team of directors to collate reports and formulate related opinions. Accordingly the latter could not be attributed to any one official, although the Auditor General (ag) would have to take final responsibility therefor.
Incidentally at no time did Ms Singh occupy the position of Deputy Auditor General. In the new dispensation she was one of the Audit Managers (ag).
Further, none of the commentaries so far have asserted their acquaintance with the actual Conflict of Interest Code which is part of the Regulations to the Act, or else they would have recognised the real potential of all the auditing teams being vulnerable.
The question being posed is, if as currently constituted Ms Singh’s portfolio does not include auditees who report to the Ministry of Finance, is there an explicit (and exclusive) conflict of interest?
In this connection it seemed to have been overlooked that by law the Audit Office itself is subject to audit.
A final question relating to a comment that Ms Singh was one of two qualified audit/accounting officials, the other being the Auditor General (ag): Does Mr Goolsarran consider a UG degree in Accountancy a professional qualification, taking into account international standards with which the discipline is required to comply? If yes, then it should be noted that two other (now) Audit Managers have the same qualification as their boss.
So far as the Auditor General (ag) is concerned, however, there are certainly substantive issues of ethical standards, independence and competence. Witness the non-submission of relevant reports on critical national projects retrospective to several years, and to which attention has repeatedly been drawn.
As observed by Mr Goolsarran, the urge should be for his replacement.
Yours faithfully,
E B John
E B John
Sunday, February 19, 2012
In search of transparency
Transparency continues to elude this country and even with an Opposition Majority we feel less convinced that our interests will be properly presented.
The facts often presented in the Auditor General report only illuminates what is hear-say around the country and often dismissed. But once we look at the black and white on those pages, we cannot dismiss that we are being taken for fools.
For more than two years we heard about a well funded plan to bring another fiber optic cable to the country using taxpayers money. Under any other circumstance, any project dealing with telecommunications would be dealt with under the Office of the Prime Minister.
This isn't the case, this time around the Office of the President as set up and escrow account with millions of US dollars aimed at executing this project.
Don't get us wrong, we understand that by law the Auditor General can scrutinize any public record but we sincerely doubt that the AG pushed his broom as far as it can reach in this instance. An estimated of more than $800 million for this project his a guess-timate with the AG office seeming reluctant to pursue the finer financial details of the project.
A project that is probably already costing taxpayers, takes up less than two paragraphs in the Ag report.
What is more bothering that is that the Opposition will not use its Economic Services committee to ensure that we get value for money or to ensure that all the financial undertakings of this project is brought to the fore.
What we do know is that the continued abuse of resources will have an everlasting impact on taxpayers.
The facts often presented in the Auditor General report only illuminates what is hear-say around the country and often dismissed. But once we look at the black and white on those pages, we cannot dismiss that we are being taken for fools.
For more than two years we heard about a well funded plan to bring another fiber optic cable to the country using taxpayers money. Under any other circumstance, any project dealing with telecommunications would be dealt with under the Office of the Prime Minister.
This isn't the case, this time around the Office of the President as set up and escrow account with millions of US dollars aimed at executing this project.
Don't get us wrong, we understand that by law the Auditor General can scrutinize any public record but we sincerely doubt that the AG pushed his broom as far as it can reach in this instance. An estimated of more than $800 million for this project his a guess-timate with the AG office seeming reluctant to pursue the finer financial details of the project.
A project that is probably already costing taxpayers, takes up less than two paragraphs in the Ag report.
What is more bothering that is that the Opposition will not use its Economic Services committee to ensure that we get value for money or to ensure that all the financial undertakings of this project is brought to the fore.
What we do know is that the continued abuse of resources will have an everlasting impact on taxpayers.
Tuesday, November 30, 2010
Ashni to bring an early budget
Ashni is preparing for an early 2011 National Budget and is doing so as fast as he can in Ashni fashion.
Why we say Ashni Fashion? The stump has learnt the Jagdeo style of politics where consultations are a thing of the past.
Here the Finance Minister will pass an early budget since the Jagdeo led PPP government wants an early elections.
How better to start the ball rolling when issues of the previous Auditor General report is still unresolved and Jagdeo can do some 'illegal' spending dishing out cash from the Contingency Fund to some poor, unsuspecting Guyanese who he will use as elections pawn.
Ashni is is gonna come with a 'bigger, better' budget this year. We sincerely doubt there will be any reduction in taxes and if they are, it means the PPP will use this as an elections tool. What about VAT returns? More than likely this will be used to off set expenses of the Jagdeo's cable.
We predict a January budget, Ashni Style.
Why we say Ashni Fashion? The stump has learnt the Jagdeo style of politics where consultations are a thing of the past.
Here the Finance Minister will pass an early budget since the Jagdeo led PPP government wants an early elections.
How better to start the ball rolling when issues of the previous Auditor General report is still unresolved and Jagdeo can do some 'illegal' spending dishing out cash from the Contingency Fund to some poor, unsuspecting Guyanese who he will use as elections pawn.
Ashni is is gonna come with a 'bigger, better' budget this year. We sincerely doubt there will be any reduction in taxes and if they are, it means the PPP will use this as an elections tool. What about VAT returns? More than likely this will be used to off set expenses of the Jagdeo's cable.
We predict a January budget, Ashni Style.
Saturday, September 4, 2010
US$4 million plant dwindles.
Three years and counting: Robeson Benn is yet to provide the Cabinet or tax payers with his ‘technical’ reasons the US$4 million bitumen plant he purchased is still not working.
Parked at Garden on Eden on the East Bank of Demerara, the plant was expected to replace an old non-functioning plant and the Public Works Ministry was expected to stop purchasing asphalt.
The plant was said to be a "wrong" purchase by Minister Benn who was personally involved with securing it from India.
The Auditor General, we were told recently, wrote to the Public Works Ministry seeking answers about the non-functioning plant.
Parked at Garden on Eden on the East Bank of Demerara, the plant was expected to replace an old non-functioning plant and the Public Works Ministry was expected to stop purchasing asphalt.
The plant was said to be a "wrong" purchase by Minister Benn who was personally involved with securing it from India.
The Auditor General, we were told recently, wrote to the Public Works Ministry seeking answers about the non-functioning plant.
Monday, August 23, 2010
Where is the Gold from the Gold Board
For the past five year the Guyana Gold Board has not paid Corporation taxes as required by the Act that governs it.
In three letters written to the Board by the Auditor General's office, it was revealed that the board continues avoiding to make provision in its Accounts for the payment of these taxes.
While both main political parties are well represented on the Guyana Gold Board, neither made any objections to this ongoing issue.
No one could say how much money in Corporation Taxes is owed to the government and if the Gold Board will ever pay it.
Where is all the Gold that the Gold Board is managing?
Saturday, June 26, 2010
NCN profitable or not?
NCN profitable or not? Where is the Auditor General?
Charging just about 100% more than other TV Stations are charging for ADS maybe just a small drop of cash into the well of money for the State- Owned National Communications Network. with 'viewership' in almost every county in this Country, the only Radio station and sole broadcast rights to certain programming must be sending NCN's profits into tsunami for that Company.
But little is being said about the NCN's earnings, it expenses, staff-turn over and wage bill.
In fact, the government for the last 5 years has budgeted between $80 million and $60 Million for the state owned NCN to invest in new equipment and to address several shortages in the Company.
No money was budgeted for any expansion or any kind.
We are left to wonder if NCN cannot but its own equipment with its 'profits' and the government put the money to better use, like say breaking the radio monopoly.
Or is money being channeled through NCN to help their friend secure his transmission in Berbice's biggest coming attraction?
Charging just about 100% more than other TV Stations are charging for ADS maybe just a small drop of cash into the well of money for the State- Owned National Communications Network. with 'viewership' in almost every county in this Country, the only Radio station and sole broadcast rights to certain programming must be sending NCN's profits into tsunami for that Company.
But little is being said about the NCN's earnings, it expenses, staff-turn over and wage bill.
In fact, the government for the last 5 years has budgeted between $80 million and $60 Million for the state owned NCN to invest in new equipment and to address several shortages in the Company.
No money was budgeted for any expansion or any kind.
We are left to wonder if NCN cannot but its own equipment with its 'profits' and the government put the money to better use, like say breaking the radio monopoly.
Or is money being channeled through NCN to help their friend secure his transmission in Berbice's biggest coming attraction?
Wednesday, May 12, 2010
Why we must not get old in Guyana
If there is anyone to be charged for neglect it could be the entire government - or in this case, the Human Services Minister Priya Manickchand!
We often wonder if these people have a conscience, perhaps a couple days at the Palms Institute for the Elderly should wake them up along with a monthly pittance of $6000.
It is an atrocity on our old folk, little pension from the government, little or sometimes no pension from NIS(always some computer glitch or scam there), no subsidies the Guyana Power and Light Company and little help from Guyana Water Incorporated, little medical help from Health Centres and no food stamps.
But we want to look at the care of our elderly when they are placed in the Palms.
Why?
Well because we feel that we do not need to quote any bias press reports but to look at the Performance and Value for Money Audit report that was complied by non other that the Auditor General’s Office.
From this report we understand that over $55 million was spent on this facility annually to cater for over 240 elderly folks.
While $50 million is not a budgeted sum we understand from the Report that a sum is allocated to the Home based on the budget allocated to the Social Services for the year and the sum allocated to the Palms is at the discretion of the Human Services Ministry.
In fact, donations to the Palms, would also play a part in the allocation of public funds to its coffers.
What is striking is that there is no proper record keeping at the Palms. The Auditors found that there were no annual reports, no reports on intake of members, no reports on the deaths of members and no reports on donations.
In fact, when the Auditors visited the institution they founds hundreds of walking aids and canes discarded in a mostly appalling fashion under the Palms.
In addition to this, there is no potable water, food is not readily available and staff most times have to prepare meals based on what is available and not according to dietary menu.
Don’t ask how the food is transferred and in what conditions is it given to the inmates!
The Palms buildings and compounds are hideous and requests to the Human Services Ministry for handymen, carpenters, brush cutters, demands for safety bars at windows and garbage receptacles were all turned down.
In 2009 the defects were many and included:
- Overgrowth in the yard,
- defective pipes that lead to flooding in the yard and buildings,
- discolored walls,
- defective walls and washrooms,
- presence of rodents among others.
We wonder which Minster would be willing to spend a night in this hell hole?
We sure they are making deals that would see them better off at that ripe old age as for the rest of us - good luck at getting old !
We often wonder if these people have a conscience, perhaps a couple days at the Palms Institute for the Elderly should wake them up along with a monthly pittance of $6000.
It is an atrocity on our old folk, little pension from the government, little or sometimes no pension from NIS(always some computer glitch or scam there), no subsidies the Guyana Power and Light Company and little help from Guyana Water Incorporated, little medical help from Health Centres and no food stamps.
But we want to look at the care of our elderly when they are placed in the Palms.
Why?
Well because we feel that we do not need to quote any bias press reports but to look at the Performance and Value for Money Audit report that was complied by non other that the Auditor General’s Office.
From this report we understand that over $55 million was spent on this facility annually to cater for over 240 elderly folks.
While $50 million is not a budgeted sum we understand from the Report that a sum is allocated to the Home based on the budget allocated to the Social Services for the year and the sum allocated to the Palms is at the discretion of the Human Services Ministry.
In fact, donations to the Palms, would also play a part in the allocation of public funds to its coffers.
What is striking is that there is no proper record keeping at the Palms. The Auditors found that there were no annual reports, no reports on intake of members, no reports on the deaths of members and no reports on donations.
In fact, when the Auditors visited the institution they founds hundreds of walking aids and canes discarded in a mostly appalling fashion under the Palms.
In addition to this, there is no potable water, food is not readily available and staff most times have to prepare meals based on what is available and not according to dietary menu.
Don’t ask how the food is transferred and in what conditions is it given to the inmates!
The Palms buildings and compounds are hideous and requests to the Human Services Ministry for handymen, carpenters, brush cutters, demands for safety bars at windows and garbage receptacles were all turned down.
In 2009 the defects were many and included:
- Overgrowth in the yard,
- defective pipes that lead to flooding in the yard and buildings,
- discolored walls,
- defective walls and washrooms,
- presence of rodents among others.
We wonder which Minster would be willing to spend a night in this hell hole?
We sure they are making deals that would see them better off at that ripe old age as for the rest of us - good luck at getting old !
Sunday, April 25, 2010
The stink of corruption!
Finally someone woke up and smelled the stink of corruption. Hats off to Desmond Trotman and his lawyers. I vote the "citizen of Guyana" award to Desmond!
Well known WPA Activist Desmond Trotman has sued the government for not paying the Lotto Funds into the Consolidated Fund- we all know and as stated in the media these monies were being spent without the necessary Parliamentary Approval. Well parliament be damned, spent without even any care for accountability!
When King Jagdeo on his Cabinet Outreaches would give away a $50 million here and a $20 million there. These exclude the millions prepaid for pipes, pharmaceuticals, rooms at hotels, Limo at Miami, etc.
Even the PNC (which has denounced this act many many times) could not muster up the courage and will to take this matter to court-we wonder about the many lawyers in that party - maybe they are all beneficiaries of the lotto-unaccounted-free-flowing-money.
The Audit Office of Guyana has reported this illegal act many times in multiple reports. In its just recent report of the 2008 accounts, the Auditor General (which is co-headed by the wife of the Finance Minister) said:
“The Contingencies Fund continued to be abused with amounts totaling $670.343 million drawn from the Fund being utilized to meet expenditure that DID NOT meet the ELIGIBILITY criteria as defined in the ACT”
Page 12 of the AG’s 2008 report also states that Expenditure in respect to services which by law are directly chargeable to the Consolidated Fund DO NOT form part of the voted provisions approved by the National Assembly.
These expenditures include:
1. Repayment and servicing of Public Debt
2. Emoluments of holders of Constitutional Offices
3. Pensions and gratuities of Public Officers
The Financial Management Act spells out how and why exactly monies should be extracted from the Consolidated Fund.
Finance Minister Dr. Ashni Singh in this case must show that “urgent, unavoidable and unforeseen NEED for the expenditure has arisen”, for which NO money can be reallocated as provided for under the FMA- or for which no money has been allocated for, or for which the sum allocated is not sufficient.
When the Minister does the above, this is to be tabled in the National Assembly. According to the 2008 AG Report more than 80 advances totaling more than $4 billion were drawn from the fund.
Of course, by the end of 2008, the Ministry of Finance could not account for more than 17 of those advances totaling more than $1 billion.
The Auditor General Deodat Sharma in his report said that his previous reports “highlighted the continual abuse of this fund”. The report listed several instances where monies were taken from the Fund showing wanton abuse. These included:
1.More than $200 million to the Public Works Ministry for support to the Transport and Harbour Department
2. More than $180,000 million to the Guyana Defense Force
3. More than $77 million to the Finance Ministry for Consultancy
4. More than $72 million to the Home Affairs Ministry for Carifesta expenses
These are only a few sums that were captured by the AG Office for 2008. One can only wonder what took place in 2009!
We congratulate Desmond Trotman for the long awaited move as we await the outcome of this court matter.
We take this opportunity to caution Desmond, Ram and Fitzpatrick - look our for nasty 'letter' on your wife (or wives), girlfriends, cars, any duty free if you ever had, any tax free if you ever had, any fetish if you ever had....and of course even if you didn't have, they will now get dirty.
Well known WPA Activist Desmond Trotman has sued the government for not paying the Lotto Funds into the Consolidated Fund- we all know and as stated in the media these monies were being spent without the necessary Parliamentary Approval. Well parliament be damned, spent without even any care for accountability!
When King Jagdeo on his Cabinet Outreaches would give away a $50 million here and a $20 million there. These exclude the millions prepaid for pipes, pharmaceuticals, rooms at hotels, Limo at Miami, etc.
Even the PNC (which has denounced this act many many times) could not muster up the courage and will to take this matter to court-we wonder about the many lawyers in that party - maybe they are all beneficiaries of the lotto-unaccounted-free-flowing-money.
The Audit Office of Guyana has reported this illegal act many times in multiple reports. In its just recent report of the 2008 accounts, the Auditor General (which is co-headed by the wife of the Finance Minister) said:
“The Contingencies Fund continued to be abused with amounts totaling $670.343 million drawn from the Fund being utilized to meet expenditure that DID NOT meet the ELIGIBILITY criteria as defined in the ACT”
Page 12 of the AG’s 2008 report also states that Expenditure in respect to services which by law are directly chargeable to the Consolidated Fund DO NOT form part of the voted provisions approved by the National Assembly.
These expenditures include:
1. Repayment and servicing of Public Debt
2. Emoluments of holders of Constitutional Offices
3. Pensions and gratuities of Public Officers
The Financial Management Act spells out how and why exactly monies should be extracted from the Consolidated Fund.
Finance Minister Dr. Ashni Singh in this case must show that “urgent, unavoidable and unforeseen NEED for the expenditure has arisen”, for which NO money can be reallocated as provided for under the FMA- or for which no money has been allocated for, or for which the sum allocated is not sufficient.
When the Minister does the above, this is to be tabled in the National Assembly. According to the 2008 AG Report more than 80 advances totaling more than $4 billion were drawn from the fund.
Of course, by the end of 2008, the Ministry of Finance could not account for more than 17 of those advances totaling more than $1 billion.
The Auditor General Deodat Sharma in his report said that his previous reports “highlighted the continual abuse of this fund”. The report listed several instances where monies were taken from the Fund showing wanton abuse. These included:
1.More than $200 million to the Public Works Ministry for support to the Transport and Harbour Department
2. More than $180,000 million to the Guyana Defense Force
3. More than $77 million to the Finance Ministry for Consultancy
4. More than $72 million to the Home Affairs Ministry for Carifesta expenses
These are only a few sums that were captured by the AG Office for 2008. One can only wonder what took place in 2009!
We congratulate Desmond Trotman for the long awaited move as we await the outcome of this court matter.
We take this opportunity to caution Desmond, Ram and Fitzpatrick - look our for nasty 'letter' on your wife (or wives), girlfriends, cars, any duty free if you ever had, any tax free if you ever had, any fetish if you ever had....and of course even if you didn't have, they will now get dirty.
Sunday, March 28, 2010
Stories of the dark - Safdar Ali
As all eyes were on Shadfar Ali, the REO now infamously known for being wanted by the Police.
One B. Johnson and Nanda Kisson were busy writing President Bharat Jagdeo and the Dr. Roger Luncheon about other characters, Sewchand, the Permanent Secretary in the Local Government ministry and Ashford Ambedkar the Deputy REO. As long back as 2008 Johnson wrote President Jagdeo asking him for an investigation into Sewchand.
This Johnson said that he is a staff member of the Local Government Ministry.
In a letter dated 27th May, 2008 Johnson said that it looks like all the contacts recommended by the Sewchand are awarded by the National Tender Board.
He told the President in this letter that a contractor from region 5, one ERROL LALL tendered in the later 2007 for Purain #2 Bridge at Blairmont, but Lall was not the lowest bidder. Johnson said that Lall won the $17 million contract because he was recommended by SEWCHAND.
Johnson went on to say that LALL won the award for the Lusignan Nursery School. Lall again was not the biggest bidder.
Johnson added in that letter to the President that SEWCHAND continues to make several recommendations for contracts to be given out. He listed the purchase of a Low bed for Region 6 and the construction of the Region four RDC office.
Johnson alleges that Sewchand continues to collect quotations and send to the Regional offices and tells them who to buy from.
All this information is in writing to President Jagdeo and yet not one investigation!
In another letter, Nanda Kisson of Nanda Parlour Grocery in Enmore wrote Dr. Roger Luncheon displaying what she described as frustration with the attitude of Deputy Region Four Executive Officer, Ashford Ambedkar.
Kisson said that she was a supplier for the region in 2009 but every time she received her payments he would have to give Ambedkar with 5% of the payment!
Kisson said that one Saturday morning Ambedkar called her and told her that his telephone and electricity would be disconnected is the bills are not paid. Kisson said that
Ambedkar threatened that if the bills were not paid he, Kisson would not receive payments due to her.
Kisson in the letter to Dr. Luncheon said that she borrowed money from her sister and paid the bills.
Kisson in that same letter said that on Christmas Eve day. Ambedkar called her and told her that ‘things brown for the holiday and if nothing na dey’.
Kisson said that she hired a taxi and sent Ambedkar $25000. Kisson told Dr. Luncheon that Ambedkar also requested $35000 in beverages.
The Single parent of Two told Dr. Luncheon that she would be willing to testify if necessary. That letter was copied to the Auditor General, the Local government Ministry and the Public Service Ministry.
To date…
Monday, February 22, 2010
Public Accounts part trios
We continue to analyze the report of the Public Accounts' Committee.
OFFICE OF THE PRESIDENT FOR THE YEAR ENDED 31 DEC 2004.
The Public Accounts Committee said that it expressed dissatisfaction that the Guyana Office for Investment retained $0.522 Million which was not expended, IN VIOLATION OF THE LAW, from the amount $7.4 million allocated for the rehabilitation of office building and purchase of office equipment instead of returning same to the Office of the President for REPAYMENT to the Consolidated Fund.
FOR THE YEAR ENDED 31 DEC 2005
The Public Accounts Committee in its report noted the frequency in which the National Communications Network operated in violation of the laws in not following the Procurement Regulations and advised that the Accounting Officer of that Agency should employ greater supervisory control to ensure that there was adherence to Tender Board Procedures.
MINISTRY OF FINANCE
FOR THE YEAR ENDED 31 DEC 2004
The Committee in its report for that year expressed concern about the many unlicensed liquor operators. It was noted from the Auditor General’s report that amounts totaling $15.949 million were collected for liquor licenses. An examination of liquor licenses records for Regions 2, 3, 4 and 10 revealed a total of 1855 registered premises did not renew their licenses in 2004. In the absence of information of the status of these businesses, it could not be determined whether all were due for renewal. The PAC proposed that the Custom and Trade Administration investigate this matter.
FOR THE YEAR DEC 31 2005
The Committee continued to express concern that monies collected from the Lottery Fund
1.WERE NOT deposited into the Consol Fund as provided for in the Constitution and
2.Were spent without the consent of the National Assembly
FOR THE YEAR 31 DEC 2004
MINISTRY OF FOREIGN AFFAIRS
The Committee reports that an imprest bank account no.444 which became non operational in July 1996 reflected an overdraft of $51.635 million. The Committee proposed that the Ministry prepare a losses report and submit it to the Finance Ministry to resolve the issue.
With some 11 stale dated cheques valued at US$12,591.36, which were remitted though Diplomatic Bags and whose whereabouts have not yet been ascertained, the Foreign Affairs Ministry was advised to approach the Finance Ministry with a view of obtaining guidance in the clearing of the cheques.
The Committee said that in respect of the Foreign Missions, the Auditor General noted that some of the Mission lacked adequate segregation of duties in the Accounting Units.
FOR THE YEAR 31 DEC 2005
There was evidence to indicate that remittances to the various Missions were not received in a timely manner to allow for the smooth execution of the operations of these missions. The Report said that remittances to meet capital expenditure did not arrive at the Missions until after the close of the financial year, and the committee expressed serious concerns over the issue. In this regard the committee proposed that a routine system be adopted for remitting monies to missions, especially in relation to capital expenditure.
The Auditor General reported that the main bank account was affected by two outstanding advances totaling US$3,901.83 issued to the Ministry of Foreign Trade and International Cooperation to facilitate payment of hotel expenses for a Ministerial visit.
MINISTRY OF AGRICULTURE
FOR THE YEAR END 31 DEC 2004
The Committee advised the Ministry to present all the financial returns for the warrants issued for 2004 for Audit examinations.
FOR THE YEAR END 31 DEC 2005
Report said that the Committee noted with concern that the National Drainage and Irrigation Authority RECEIVED funds from the Agriculture Ministry through subsidies and Contribution to Local Organizations rather than subventions to conduct its operations. It was reported that in the AG report that the NDIA was formed by ACT in 2004. The Authority came into ACT during MAY 2005 and is a separate and legal entity and is required to maintain its OWN accounting records which are subject to separate reporting and audit.
MINISTRY OF TOURISM, INDUSTRY AND COMMERCE
FOR THE YEAR END 31 DEC 2004
Amounts totaling $1.099 million were expended to purchase computers, photocopier, workstation desks and filing cabinets for the Guyana Tourism Authority resulting in an excess expenditure of $598,544 which was deemed as UNAUTHORISED. The Committee in its report expressed concern that the Ministry has been expending sums that were not approved by the Finance Ministry.
MINISTRY OF EDUCATION
FOR THE YEAR END 31 DEC 2004
Amounts totaling $4.850 million expended to purchase 1000 of ‘What’s cooking in Guyana’. The books were received and taken to the Book Distribution Unit of the Ministry. The report said that a physical count revealed that 609 books were in stock where as the bin card and the stock ledger showed balances of 780 and 826 respectively. The Committee advised the Accounting Officer to consider a new mechanism for the distribution of school books.
Three years has elapsed since the Ministry filed a losses report on the misappropriation of funds totaling $136,637 and the matter had not received a response from the Finance Secretary. The Committee asked that the Accounting Officer take the matter up with the Finance Ministry.
THE GEORGETOWN PUBLIC HOSPITAL CORPORATION
FOR THE YEAR END 31 DEC 2004
The Georgetown Public Hospital Corporation which is now a separate entity from the Health Ministry continued to use the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 NOV 2005 for the purchase of drugs and medical supplies from specialized agencies, locally and overseas. The Procurement Act supersedes the Cabinet decision and as such the Committee advised the GPHC Accounting officer to adhere to the Procurement Act.
FOR THE YEAR END 31 DEC 2005
The Committee in its report noted that the Corporation was using a Cabinet approval as the basis of procuring drugs from the New Guyana Pharmaceutical Corporation rather than procuring such drugs through the Health Ministry. It was reported by the Auditor General that amounts totaling $443.203 Million were paid to the New Guyana Pharmaceuticals Corporation for the supply of drugs and medical supplies and during the year under review, the Corporation entered into 3 contracts using the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 Nov 2003 for the purchase of drugs and medical supplies of which amounts totaling $198.802 million were paid on these contracts.
MINISTRY OF HEALTH
FOR THE YEAR END 31 DEC 2004
The Auditor General Reported that amounts totaling $723.945 were expended on Materials, Equipment and Supplies. Included in this figure are sums totaling $675.816 million which related to the purchase of drugs of which $225.059 million represents purchases made from overseas suppliers. This was done via cabinet approval CP (2003):4: M of Dec 2003 which was utilized to purchase drugs and medical supplies from specialized agencies locally and overseas. Given the time period that would have elapsed, it would appear necessary for the present arrangements for the supply of drugs and medical supplies from overseas be reviewed.
FOR THE YEAR END 31 DEC 2005
The Committee expressed disappointment over the absence of a supervisory role by the Government and particularly the Health Ministry in the procurement process involving the GPC.
ONCE AGAIN THE COMMITTEE WARNED AN ACCOUNTING OFFICER OF THE PRACTICE OF PROCURING GOODS AND SERVICES WITHOUT TENDERING.
LABOUR, HUMAN SERVICES AND SOCIAL SECURITY
FOR THE YEAR END 31 DEC 2004
The Public Assistance imprest bank account no.092 which ceased to be operational several years ago was overdrawn by $270.586 as at 31 Dec 2004. This was due mainly to inadequate provisions made over the years in the National Estimates to facilitate the payment of Old Age pensions and public assistance.
LOCAL GOVERNMENT AND REGIONAL DEVELOPMENT
FOR THE YEAR END 31 DEC 2005
The Committee expressed serious concerns over the failure of the Heads of Municipalities and District Councils to submit financial statements on an annual basis as required by the law despite the legal requirement to produce financial statements in a timely manner as well as the penalties involved for the failure to do so. It was noted in the PAC report by the AG that two of the municipal councils and majority of the district councils have been violating the provisions of the Law.
MINISTRY OF CULTURE,YOUTH AND SPORTS
FOR THE YEAR END 31 DEC 2005
The Committee in its report said that with regard to the Auditor General’s comments that the Ministry operated a current account no. 410004235 held at the then National Bank of Industry and Commerce for the operations of the National Cultural Centre and did not pay over the proceeds to the Consolidated Fund and have the related expenditure met out of the appropriations.
The Committee advised the Accounting Officer to regularize the operations of the National Cultural Centre and reminded that all revenue collected should be paid into the Consolidated Fund and related expenditures be met from appropriations.
MINISTRY OF HOUSING AND WATER
FOR THE YEAR END 31 DEC 2005
It was reported by the Auditor General that unspent monies totaling $23.796 was not refunded to the consolidated Fung BUT KEPT IN A SEPARTE ACCOUNT. The Committee in its report reminded that Accounting Officer that all unspent amounts should be refunded to the Consolidate Fund and expenditures should be met from the appropriated sum.
MINISTRY OF HOME AFFAIRS
FOR THE YEAR END 31 DEC 2005
The PAC in its report said that with regard to the Auditor General’s findings that there were:
1. 41 instances where breaches of Tender Board Procedures were observed
2. 5 payments amounting to $2.720 million for which Ministerial Tender Board approvals were not seen
3. 28 payments valued at $2.245 million subdivided to avoid adjudication to the Departmental Tender Board
4. 8 payments totaling $703,050, which exceeded the limit of $600,000 and should have had the approval of the National Procurement and Tender Administration Board
5. And 9 payment vouchers valued at $7.074 million which had no supporting documents attached to verify accuracy and validity of the transactions.
MORE TO COME: Fuel for Regional administration’s generators’ provided electricity to private homes for a fee, Contractors paid without physical examination done, resulting in overpayment, 300 meters purchased for Hinterland area still in store and Magistrates used $700000 in taxis for out of town duties.
OFFICE OF THE PRESIDENT FOR THE YEAR ENDED 31 DEC 2004.
The Public Accounts Committee said that it expressed dissatisfaction that the Guyana Office for Investment retained $0.522 Million which was not expended, IN VIOLATION OF THE LAW, from the amount $7.4 million allocated for the rehabilitation of office building and purchase of office equipment instead of returning same to the Office of the President for REPAYMENT to the Consolidated Fund.
FOR THE YEAR ENDED 31 DEC 2005
The Public Accounts Committee in its report noted the frequency in which the National Communications Network operated in violation of the laws in not following the Procurement Regulations and advised that the Accounting Officer of that Agency should employ greater supervisory control to ensure that there was adherence to Tender Board Procedures.
MINISTRY OF FINANCE
FOR THE YEAR ENDED 31 DEC 2004
The Committee in its report for that year expressed concern about the many unlicensed liquor operators. It was noted from the Auditor General’s report that amounts totaling $15.949 million were collected for liquor licenses. An examination of liquor licenses records for Regions 2, 3, 4 and 10 revealed a total of 1855 registered premises did not renew their licenses in 2004. In the absence of information of the status of these businesses, it could not be determined whether all were due for renewal. The PAC proposed that the Custom and Trade Administration investigate this matter.
FOR THE YEAR DEC 31 2005
The Committee continued to express concern that monies collected from the Lottery Fund
1.WERE NOT deposited into the Consol Fund as provided for in the Constitution and
2.Were spent without the consent of the National Assembly
FOR THE YEAR 31 DEC 2004
MINISTRY OF FOREIGN AFFAIRS
The Committee reports that an imprest bank account no.444 which became non operational in July 1996 reflected an overdraft of $51.635 million. The Committee proposed that the Ministry prepare a losses report and submit it to the Finance Ministry to resolve the issue.
With some 11 stale dated cheques valued at US$12,591.36, which were remitted though Diplomatic Bags and whose whereabouts have not yet been ascertained, the Foreign Affairs Ministry was advised to approach the Finance Ministry with a view of obtaining guidance in the clearing of the cheques.
The Committee said that in respect of the Foreign Missions, the Auditor General noted that some of the Mission lacked adequate segregation of duties in the Accounting Units.
FOR THE YEAR 31 DEC 2005
There was evidence to indicate that remittances to the various Missions were not received in a timely manner to allow for the smooth execution of the operations of these missions. The Report said that remittances to meet capital expenditure did not arrive at the Missions until after the close of the financial year, and the committee expressed serious concerns over the issue. In this regard the committee proposed that a routine system be adopted for remitting monies to missions, especially in relation to capital expenditure.
The Auditor General reported that the main bank account was affected by two outstanding advances totaling US$3,901.83 issued to the Ministry of Foreign Trade and International Cooperation to facilitate payment of hotel expenses for a Ministerial visit.
MINISTRY OF AGRICULTURE
FOR THE YEAR END 31 DEC 2004
The Committee advised the Ministry to present all the financial returns for the warrants issued for 2004 for Audit examinations.
FOR THE YEAR END 31 DEC 2005
Report said that the Committee noted with concern that the National Drainage and Irrigation Authority RECEIVED funds from the Agriculture Ministry through subsidies and Contribution to Local Organizations rather than subventions to conduct its operations. It was reported that in the AG report that the NDIA was formed by ACT in 2004. The Authority came into ACT during MAY 2005 and is a separate and legal entity and is required to maintain its OWN accounting records which are subject to separate reporting and audit.
MINISTRY OF TOURISM, INDUSTRY AND COMMERCE
FOR THE YEAR END 31 DEC 2004
Amounts totaling $1.099 million were expended to purchase computers, photocopier, workstation desks and filing cabinets for the Guyana Tourism Authority resulting in an excess expenditure of $598,544 which was deemed as UNAUTHORISED. The Committee in its report expressed concern that the Ministry has been expending sums that were not approved by the Finance Ministry.
MINISTRY OF EDUCATION
FOR THE YEAR END 31 DEC 2004
Amounts totaling $4.850 million expended to purchase 1000 of ‘What’s cooking in Guyana’. The books were received and taken to the Book Distribution Unit of the Ministry. The report said that a physical count revealed that 609 books were in stock where as the bin card and the stock ledger showed balances of 780 and 826 respectively. The Committee advised the Accounting Officer to consider a new mechanism for the distribution of school books.
Three years has elapsed since the Ministry filed a losses report on the misappropriation of funds totaling $136,637 and the matter had not received a response from the Finance Secretary. The Committee asked that the Accounting Officer take the matter up with the Finance Ministry.
THE GEORGETOWN PUBLIC HOSPITAL CORPORATION
FOR THE YEAR END 31 DEC 2004
The Georgetown Public Hospital Corporation which is now a separate entity from the Health Ministry continued to use the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 NOV 2005 for the purchase of drugs and medical supplies from specialized agencies, locally and overseas. The Procurement Act supersedes the Cabinet decision and as such the Committee advised the GPHC Accounting officer to adhere to the Procurement Act.
FOR THE YEAR END 31 DEC 2005
The Committee in its report noted that the Corporation was using a Cabinet approval as the basis of procuring drugs from the New Guyana Pharmaceutical Corporation rather than procuring such drugs through the Health Ministry. It was reported by the Auditor General that amounts totaling $443.203 Million were paid to the New Guyana Pharmaceuticals Corporation for the supply of drugs and medical supplies and during the year under review, the Corporation entered into 3 contracts using the Ministry’s Cabinet approval CP (2003) 11:4: M dated 25 Nov 2003 for the purchase of drugs and medical supplies of which amounts totaling $198.802 million were paid on these contracts.
MINISTRY OF HEALTH
FOR THE YEAR END 31 DEC 2004
The Auditor General Reported that amounts totaling $723.945 were expended on Materials, Equipment and Supplies. Included in this figure are sums totaling $675.816 million which related to the purchase of drugs of which $225.059 million represents purchases made from overseas suppliers. This was done via cabinet approval CP (2003):4: M of Dec 2003 which was utilized to purchase drugs and medical supplies from specialized agencies locally and overseas. Given the time period that would have elapsed, it would appear necessary for the present arrangements for the supply of drugs and medical supplies from overseas be reviewed.
FOR THE YEAR END 31 DEC 2005
The Committee expressed disappointment over the absence of a supervisory role by the Government and particularly the Health Ministry in the procurement process involving the GPC.
ONCE AGAIN THE COMMITTEE WARNED AN ACCOUNTING OFFICER OF THE PRACTICE OF PROCURING GOODS AND SERVICES WITHOUT TENDERING.
LABOUR, HUMAN SERVICES AND SOCIAL SECURITY
FOR THE YEAR END 31 DEC 2004
The Public Assistance imprest bank account no.092 which ceased to be operational several years ago was overdrawn by $270.586 as at 31 Dec 2004. This was due mainly to inadequate provisions made over the years in the National Estimates to facilitate the payment of Old Age pensions and public assistance.
LOCAL GOVERNMENT AND REGIONAL DEVELOPMENT
FOR THE YEAR END 31 DEC 2005
The Committee expressed serious concerns over the failure of the Heads of Municipalities and District Councils to submit financial statements on an annual basis as required by the law despite the legal requirement to produce financial statements in a timely manner as well as the penalties involved for the failure to do so. It was noted in the PAC report by the AG that two of the municipal councils and majority of the district councils have been violating the provisions of the Law.
MINISTRY OF CULTURE,YOUTH AND SPORTS
FOR THE YEAR END 31 DEC 2005
The Committee in its report said that with regard to the Auditor General’s comments that the Ministry operated a current account no. 410004235 held at the then National Bank of Industry and Commerce for the operations of the National Cultural Centre and did not pay over the proceeds to the Consolidated Fund and have the related expenditure met out of the appropriations.
The Committee advised the Accounting Officer to regularize the operations of the National Cultural Centre and reminded that all revenue collected should be paid into the Consolidated Fund and related expenditures be met from appropriations.
MINISTRY OF HOUSING AND WATER
FOR THE YEAR END 31 DEC 2005
It was reported by the Auditor General that unspent monies totaling $23.796 was not refunded to the consolidated Fung BUT KEPT IN A SEPARTE ACCOUNT. The Committee in its report reminded that Accounting Officer that all unspent amounts should be refunded to the Consolidate Fund and expenditures should be met from the appropriated sum.
MINISTRY OF HOME AFFAIRS
FOR THE YEAR END 31 DEC 2005
The PAC in its report said that with regard to the Auditor General’s findings that there were:
1. 41 instances where breaches of Tender Board Procedures were observed
2. 5 payments amounting to $2.720 million for which Ministerial Tender Board approvals were not seen
3. 28 payments valued at $2.245 million subdivided to avoid adjudication to the Departmental Tender Board
4. 8 payments totaling $703,050, which exceeded the limit of $600,000 and should have had the approval of the National Procurement and Tender Administration Board
5. And 9 payment vouchers valued at $7.074 million which had no supporting documents attached to verify accuracy and validity of the transactions.
MORE TO COME: Fuel for Regional administration’s generators’ provided electricity to private homes for a fee, Contractors paid without physical examination done, resulting in overpayment, 300 meters purchased for Hinterland area still in store and Magistrates used $700000 in taxis for out of town duties.
Public accounts part deux
PUBLIC ACCOUNTS SCRUTINY CONTINUES:
THE FOLLOWING IS NOT A FIGMENT OF SOMEONE’S IMAGINATION BUT TAKEN FROM THE REPORT OF THE PUBLIC ACCOUNTS COMMITTEE FOR THE YEARS 2004 AND 2005.
CONSOLIDATED FUND
The Public Accounts Committee said that it noticed that even though the Consolidated Fund was opened there was still an UNRECONCILED balance in the account the findings reported that there were difference between the bank account balances reported in the Statement of the Current Assets and Liabilities of the Government and that in the records of the Bank of Guyana. According to the records of the Bank, the new Consolidated Fund account reflected a positive balance of $6.459 billion as at 31 December 2004, compared to a negative balance of $6.153 billion noted by the bank.
In addition, the total bank account balances of other ministries and departments amounted to a negative balance of $8.446 billion, compared to a positive balance of $10.907 billion as reported on the statement.
The Committee reports that according to Section 73(2) of the FMA Act, the Finance Minster is required to prepare a Statement of Contingent Liabilities which forms a component of the annual consolidated financial statements. The Act also defines a contingent liability as “a future commitment, usually to spend public monies which is dependent upon the happening of a specified event or the materialization of a specified circumstance”.
The Committee in its report said that DESPITE previous recommendations that liabilities for entities that are no longer in existence be transferred to the Public Debt, IT IS DISAPPOINTING to note that at the time of reporting in March 2006, NO ACTION was taken on the matter. The report said too that it should be noted that the statement submitted was not prepared in accordance to the ACT.
The PAC said too that according to the Statement of Receipts and Payments of the Contingencies Fund for the year end 31 December 2005, total payments of the Fund amounted to $5.865 billion, compared with $2.647 billion in 2004, an increase of $3.218 billion. Total Receipts from the Consolidated Fund amount to $5.856 billion as against $1.188 billion in 2004 an increase of $4.668 billion. This gives an excess of payments over receipts of $9 million.
Of the payments made from the Contingencies Fund for the period under review, 25 totaling $1.468 billion remained outstanding as at 31 December 2005.
The Report also noted that 19 ADVANCES totaling $37.634 million granted during the period 1986 to 1996 were still outstanding as of the 31 December 2005. At the time when the matter was reported to the Public Accounts Committee, the nature of the 19 advances could not be determined.
The Report said that during the time period involved and that fact that there was no financial reporting during the period 1986-1991, it was not possible to ascertain how the amounts were expended for the purpose of replenishing the Fund.
The Public Accounts Committee in its meetings over the 2004 and 2005 periods scrutinized the records of Ministries, Departments and Regional bodies.
In its Report the Committee noted that there were a number of bodies including ministries that still breached the Financial Regulations.
To be continued...
Wednesday, February 17, 2010
Report of the Public Accounts Committee
Report of the Public Accounts Committee on the Public Accounts for the years 2004 and 2005.
This report was recently submitted to the National Assembly. The Report started by listing some of the general problems it observed in the government’s financial management. The Committee said that during its deliberation of the 2004 and 2005 Auditor General’s reports, a number of general problems which adversely affected the financial management system were identified.
Those problems included:
1. OVERPAYMENT OF CONTRACTORS
2. BREACH OF TENDER BOARD PROCEDURES
3. LACK OF MAINTENANCE OF LOGBOOKS
4. NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
5. CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATIONS
6. WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
7. OUTSTANDING POLICE REPORTS
8. ABUSE OF EXTRA BUGETARY FUNDS
9. VARIATION ON CONTRACTS
10.HIGH COST OF MAINTAINING VEHICLES
OVERPAYMENT FOR CONTRACTORS
The report says that a number of ministries and regions continued to have make overpayments on contracts. The PAC in its report said that it has noted that some ministries and regions have made progress on this issue but some continued to be delinquent.
These included the Ministries of:
1. Agriculture
2. Public Works and Communications and
3. Health
And Regions 1-3, 6, 7, 9 and 10.
BREACH OF TENDER BOARD PROCEDURES
There were various levels of non-compliance with the existing Tender Board Regulations relating to the procurement of goods and services and the undertaking of works, both capital and current by a number of agencies for the years 2004 and 2005, particularly where it relates to compliance with Tender Limits. In view of the fact that the last increase in Tender Board Limits was in November 2004 via the Procurement Regulations, the Committee recommends that the Tender Board limits be increased in the light of current prices.
LACK OF MAINTENANCE OF LOG BOOKS
The PAC is in report said that it noted that during the two years the control and use of government vehicles continued to be very lax resulting in log books not being kept or not being satisfactorily maintained. These agencies were found to be delinquent:
The Ministries of:
1. Agriculture
2. Education
3. Labour, Human Services and Social Security and
4. Home Affairs
5. The Guyana Defence Force and
6. Regions 1-6 and 8
While the Committee recommended that Accounting Officers ensure that log books are maintained and closed at the end of the year, the agencies continued to ignore these.
NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
All ministries, departments and regions are required to clear cheque orders with 16 days from when they are issues but there was an inability to do so and this was prevalent in
The ministries of:
1. Agriculture
2. Public Works and Communications
3. Education
4. The Guyana Defence Force and
5. Regions 1, 2, 4, 6, 9 and 10.
I
CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATION
While all amounts budgeted are required to be expended in keeping with that which was approved by the National Assembly, the PAC noted that a in a number of instances where the Auditor General reported that Ministries, Departments and Regions were funding activities of a capital nature from amounts approved for the Current Expenditure.
This forced the Committee to recommend that they:
Collaborate with the Finance Ministry with the aim of determining or differentiating current from capital purchases/works and also adhere strictly to the regulations whenever a need exist to make capital purchases from current allocations.
WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
The PAC report says that the slow processing of pay change directives in several ministries and mainly in the Regions results in wrongful payment of salaries to employees after they had resigned and the consequential deductions being paid to various agencies without the necessary adjustments made to the payroll and the Ministries and Regions not being able to recover such sums or any at all expeditiously.
This was especially prevalent with respect to the employment of Teachers.
It was also noted by Auditor General that this state of affairs also resulted in these Ministries, Departments and Regions recording overstatements on their Appropriation Accounts as a result of the deductions being paid over to various agencies and the Ministries and Regions not being able to recover such sums.
In 2005 the PAC recommended that:
To strengthen the mechanism to expedite the flow of information from various schools/ministries so that the necessary adjustments could be made to the payroll in a timelier manner; that the Accountings officers should seek to discuss with the National Insurance Scheme and the Guyana Revenue Authority the possibility of crediting the amounts overpaid to the respective ministry, department or region’s account; and in instances where the Accounting Officers attempt to recover sums from the agencies proved futile they should seek to bring the matter to the attention of their subject minister.
OUTSTANDING POLICE REPORTS
The Committee in its report said that it is gravely concerned about the number of issues concerning the loss of public property which are currently with the police and have not been resolved or which were pending in the courts. It said that a number of issues are in relation to the Supreme/Magistrate Courts and are dated as far back as 1992 while others were during 2004 and 2005.
The PAC recommends that Accounting Officers: seek the advice of the Head of the Budget Agency, Home Affairs Ministry where matters were with the police and have long been outstanding; seek the advice of the Attorney General with a view of bringing closure to the court matters and where discrepancies and fraud were discovered actions should be taken and developed to avoid recurrences.
On January 1 2004, the Procurement Act 2003 became operational. This act provides for the regulation of the procurement of goods, services and the execution of works, to promote competition among suppliers and contractors and to promote fairness and transparency in the procurement process. Regulations for this Act were also made and came into operation on the 29 November 2004. However, although the Procurement Act to date has assisted in some instances in addressing the numerous concerns the Committee had over the years, it was noted at the time of the report: THE PUBLIC PROCUREMENT COMMISSION PROVIDED FOR BY THE ACT HAD STILL NOT BEEN ESTABLISHED AND THE PAC RECOMMENDED THAT THE ISSUE BE RESOLVED.
The PAC expressed concern of possible collusion between contractors and officials at certain agencies and recommended that:
1. Accounting officers should ensure that there are proper systems for the verification of works to be done and that ministries needed to ensure independent verification.
2. Not only contractors should be held accountable for sums overpaid but also the officer who certified the payment of such sums and
3. The Accounting officer should inform the National Procurement and Tender Administration Board of the names of the contractors and the amount overpaid with a view of preventing those contractors who were requested to repay overpaid amounts and failed to do so from obtaining future jobs or to assist in the recovery of over paid amounts from subsequent contracts.
4. Accounting officers should employ a mechanism within their building/engineering departments to improve the verification f projects to ensure accountability
MORE TO COME !!!
This report was recently submitted to the National Assembly. The Report started by listing some of the general problems it observed in the government’s financial management. The Committee said that during its deliberation of the 2004 and 2005 Auditor General’s reports, a number of general problems which adversely affected the financial management system were identified.
Those problems included:
1. OVERPAYMENT OF CONTRACTORS
2. BREACH OF TENDER BOARD PROCEDURES
3. LACK OF MAINTENANCE OF LOGBOOKS
4. NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
5. CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATIONS
6. WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
7. OUTSTANDING POLICE REPORTS
8. ABUSE OF EXTRA BUGETARY FUNDS
9. VARIATION ON CONTRACTS
10.HIGH COST OF MAINTAINING VEHICLES
OVERPAYMENT FOR CONTRACTORS
The report says that a number of ministries and regions continued to have make overpayments on contracts. The PAC in its report said that it has noted that some ministries and regions have made progress on this issue but some continued to be delinquent.
These included the Ministries of:
1. Agriculture
2. Public Works and Communications and
3. Health
And Regions 1-3, 6, 7, 9 and 10.
BREACH OF TENDER BOARD PROCEDURES
There were various levels of non-compliance with the existing Tender Board Regulations relating to the procurement of goods and services and the undertaking of works, both capital and current by a number of agencies for the years 2004 and 2005, particularly where it relates to compliance with Tender Limits. In view of the fact that the last increase in Tender Board Limits was in November 2004 via the Procurement Regulations, the Committee recommends that the Tender Board limits be increased in the light of current prices.
LACK OF MAINTENANCE OF LOG BOOKS
The PAC is in report said that it noted that during the two years the control and use of government vehicles continued to be very lax resulting in log books not being kept or not being satisfactorily maintained. These agencies were found to be delinquent:
The Ministries of:
1. Agriculture
2. Education
3. Labour, Human Services and Social Security and
4. Home Affairs
5. The Guyana Defence Force and
6. Regions 1-6 and 8
While the Committee recommended that Accounting Officers ensure that log books are maintained and closed at the end of the year, the agencies continued to ignore these.
NON-COMPLIANCE WITH THE STIPULATED TIMEFRAME FOR THE CLEARING OF CHEQUE ORDERS
All ministries, departments and regions are required to clear cheque orders with 16 days from when they are issues but there was an inability to do so and this was prevalent in
The ministries of:
1. Agriculture
2. Public Works and Communications
3. Education
4. The Guyana Defence Force and
5. Regions 1, 2, 4, 6, 9 and 10.
I
CAPITAL EXPENDITURE BEING MET FROM CURRENT ALLOCATION
While all amounts budgeted are required to be expended in keeping with that which was approved by the National Assembly, the PAC noted that a in a number of instances where the Auditor General reported that Ministries, Departments and Regions were funding activities of a capital nature from amounts approved for the Current Expenditure.
This forced the Committee to recommend that they:
Collaborate with the Finance Ministry with the aim of determining or differentiating current from capital purchases/works and also adhere strictly to the regulations whenever a need exist to make capital purchases from current allocations.
WRONGFUL PAYMENTS OF SALARIES AND CONSEQUENTIAL DEDUCTIONS PAID TO AGENCIES
The PAC report says that the slow processing of pay change directives in several ministries and mainly in the Regions results in wrongful payment of salaries to employees after they had resigned and the consequential deductions being paid to various agencies without the necessary adjustments made to the payroll and the Ministries and Regions not being able to recover such sums or any at all expeditiously.
This was especially prevalent with respect to the employment of Teachers.
It was also noted by Auditor General that this state of affairs also resulted in these Ministries, Departments and Regions recording overstatements on their Appropriation Accounts as a result of the deductions being paid over to various agencies and the Ministries and Regions not being able to recover such sums.
In 2005 the PAC recommended that:
To strengthen the mechanism to expedite the flow of information from various schools/ministries so that the necessary adjustments could be made to the payroll in a timelier manner; that the Accountings officers should seek to discuss with the National Insurance Scheme and the Guyana Revenue Authority the possibility of crediting the amounts overpaid to the respective ministry, department or region’s account; and in instances where the Accounting Officers attempt to recover sums from the agencies proved futile they should seek to bring the matter to the attention of their subject minister.
OUTSTANDING POLICE REPORTS
The Committee in its report said that it is gravely concerned about the number of issues concerning the loss of public property which are currently with the police and have not been resolved or which were pending in the courts. It said that a number of issues are in relation to the Supreme/Magistrate Courts and are dated as far back as 1992 while others were during 2004 and 2005.
The PAC recommends that Accounting Officers: seek the advice of the Head of the Budget Agency, Home Affairs Ministry where matters were with the police and have long been outstanding; seek the advice of the Attorney General with a view of bringing closure to the court matters and where discrepancies and fraud were discovered actions should be taken and developed to avoid recurrences.
On January 1 2004, the Procurement Act 2003 became operational. This act provides for the regulation of the procurement of goods, services and the execution of works, to promote competition among suppliers and contractors and to promote fairness and transparency in the procurement process. Regulations for this Act were also made and came into operation on the 29 November 2004. However, although the Procurement Act to date has assisted in some instances in addressing the numerous concerns the Committee had over the years, it was noted at the time of the report: THE PUBLIC PROCUREMENT COMMISSION PROVIDED FOR BY THE ACT HAD STILL NOT BEEN ESTABLISHED AND THE PAC RECOMMENDED THAT THE ISSUE BE RESOLVED.
The PAC expressed concern of possible collusion between contractors and officials at certain agencies and recommended that:
1. Accounting officers should ensure that there are proper systems for the verification of works to be done and that ministries needed to ensure independent verification.
2. Not only contractors should be held accountable for sums overpaid but also the officer who certified the payment of such sums and
3. The Accounting officer should inform the National Procurement and Tender Administration Board of the names of the contractors and the amount overpaid with a view of preventing those contractors who were requested to repay overpaid amounts and failed to do so from obtaining future jobs or to assist in the recovery of over paid amounts from subsequent contracts.
4. Accounting officers should employ a mechanism within their building/engineering departments to improve the verification f projects to ensure accountability
MORE TO COME !!!
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