From professional to ugly politician - Ashni Singh

According to the Press, Finance Minister (technocrat-turned-politician) was the guest speaker to the Annual General Meeting of the private Sector Commission.

However one would have thought that he was speaking to a group of PPP supporters. His entire speech was based on his belief:
- that the press is biased against the Government
- that "mistakes" during the elections must be excused as mistakes
- that the one or two lapses of GoG must not be interpreted as 'corruption'
- that the transparency international and economic freedom evaluations are all liars
- that the auditor general reports on 'lapses' by the GoG should not be viewed as report of corruption or fraud

What a shame!

He spent one hour quoting from the Dick on criticisms of the USA government, not realizing that he was showing his Government's weakness! He tried to prove to all that Dick Morris could have said what he wanted about the US government....
NEWS FLASH to MR. ASHNI SINGH: no one can criticize the GoG!!! Jagdeo, yourself and everyone else reacts violently when criticized!

He spent another hour talking about elections in the UK - and asking all the business men to pardon any mistakes the GoG will make during the next general elections.

He spent another half hour lambasting the press about quoting from the auditor general's report - while he spent the hour quoting from various sources.

He spent an hour talking about the politics of the PPP and, reading between the lines, he begged the audience to keep supporting the PPP.

Two-and-a-half-hours of venal garbage. Rather than talk about investment, liquidity, bank regulations and topics of interest to the businessmen, he preached politics!!!

What a waste of time! The brilliance that we once knew as Ashni Singh has disappeared. In his place is a Jagdeo lackey, a PPP apologist and a corrupt politician who makes excuses for the lapses of the Government. I guess it all started with construction of the Caricom's annexe.

Meanwhile, we note that Ashni Singh holds the post of Finance Minister while his wife holds the post of Auditor General (ag).

The stink of corruption - II

A government that is deep seated in criminal activities can only reap the benefits of such while it must earn its negative image - yet become indignant and angry when it get's it well-deserved cries of "shame" from the world.

Transparency International, Business Monitor International, World Economic freedom - all of these have shown the picture of the corrrupt Government of Guyana. And yet what? Corruption continues and the President and ministers (without shame) blame the consultants and the report writers. Is everyone wrong? Is the entire world of independent professionals - all wrong on their condemnation of Guyana? Or is the handful of corrupt GoG officials, the bloated, corrupted office of the president, the criminal, corrupt minds of presidential advisers, and the group of jagdeoites all bent of filling their overseas accounts while the people of Guyana have to bear the shame of the Government's actions?

We have listed a number of multi-billon dollars scams over the years that have been linked to the PPP and more so the PPP Jagdeo administration.

We would not forgot the Death Squad links, Roger Khan and his Squad links, the links to a certain suit passing through the CJIA and two top officials one of them sits at Freedom House, the gun licensing links, fuel smuggling links, passport frauds and so many more.

Last year, several government ministers’ lives were said to be threatened and they hired personal security - we do not know who pays these security officers (some who are attached to the Office of the President and other former Police Officers).

But, what we know is that these ‘body guards’ have been deployed to give full protection at certain locations, excluding some public restaurants and public forum including Parliament and public days at their offices.

Jennifer Westford who dated the President’s close man was provided with two body guards after her ex-Baffa had allegedly threatened her several times. We understand that the real reason for the bodyguards were threats that emanated from a certain man who was the ex-body guard for our dear dear friend serving time overseas.

Priya Manickchand claimed to need a body guard after several men made sexual overtures to her in public.

Leslie Ramsammy was given several Presidential Guards for protection after his contact with our dear dear friend was made public

Manzoor Nadir had two body guards when his name was linked to drugs in a taxi several years ago, now we understand that he requested several police officers at his home and homes of families after a grenade attack at his son’s home.

Ashni Singh requested personal security after his life was threatened by a member of staff at the Finance Ministry (but he later declined).

Brave Brave Boxing-Promoter-land-dealer-mining-dealer-dolphin-dealer Odinga Lumumba had has to hire four men to protect him as he is said to have large amounts of cash on him all the time. (must be the Lotto Funds to ensure empowerment, or did he sell a dolphin or, wait, a piece of land)

Kwame McKoy, not a MINISTER but a Royal Object hired a body guard following the release of the infamous Kwame/Julius tape, he felt that someone was out to get him - and we thought Aubrey Norton was a creature?

How does Roger Lunchoen feel about all this, he is the keeper of secrets after all!

One day...

IF they have nothing to be afraid of… we wonder...

A US$15-million man and his bodyguard

Two pictures of a US$15-worth Fip and his bodyguard.

Surveying the market while Ashni decides what to do with the G$77-million per year unaccounted "consultant money" and Jagdeo decides what to do with the 2010 lotto funds before the case is called to court.

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.

Flips, Fibs, Fling, Flassington and Flagdeo

FIP’s FIBS

Well Fip, Ashni and Winston ought to be awarded for the Best Actor and Best Supporting actors respectively in the movie Synergy or not!

Kudos to Kaieteur News for the excellent piece of journalism this week, that skin up the PPP government and their lies as they sought to give another friend more of our tax payers money!

Well Fip lied when he said that Synergy Holdings built road in the state of Georgia in the US.

The good folks in the transparent State Department in Georgia must be wondering ‘who the heck is Fip and what the hell is Synergy ?’ cause the plot thickened when We found out that poor Fip and Synergy never had any Road Building experience!

Now now, the government will have to explain why exactly it was given Fip US$15 million! Because we KNOW that Fip would not be building any roads to the Amaila Falls.

Our sources indicated that that this money could have been to bluff investors that the project is starting while helping their dear Friend Fip to get on his feet.

Fact is, Synergy Holdings has NOT done a single work anywhere in the world! NO one really knows what they are all about their webpage is just a cheap publicity stunt.

Amazingly, since 2002 when Fip presented the government with a proposal he couldn’t get this thing running??!

But we know that 2011 is closer and the PPP has to offer its supporters something for them to be returned to office, even if it’s a road in the forest.

Just be reminded that Fip claimed that he is doing windmill projects in Minnesota and Kansas also and we are still looking for those projects!

We wonder if Brassington is in his right sense when he says that ‘ this is the single most important project at this time’ He forget the fibre optic cable he and his friends are suppose to be bringing from Brazil.

Shucks! this is really a talk half left half piece!

But we will leave you with Synergy Holdings Mission Statement:

MISSION STATEMENT
To plan and develop projects that offer the greatest benefits to the most people with the least impact on our environment. We firmly believe that progress and development can be accomplished synergistically with the environment, not at its expense.

Do we need an ambassador to China?

We believe that it is the most idiotic move in the history of this Country’s Foreign Relations and we have written about it: The PPP have failed or should we say refused to appoint an ambassador to one of the largest and growing economies in the world, China.

And we are already facing the consequences.

Guyana is still struggling to finance its Alternative Energy Programme, we have seen the failure of the Hope Wind Farm, well it was never conceived and we are looking on as the government prematurely tries to defend move to restart the Amelia Hydro Project with wacko Fip.

But lets look at what has been going on this same Region for this year.

China and Venezuela signed a series of agreements just last month! To do what?!

Well Venezuela is moving to exploit its Orinoco’s reserves belt for oil and is looking to develop it Hydro Electricity capacity!

China is now providing our neighbor with more that US$20 billion for its Energy Sector.

Such a shame we were not able to cash in on that, but we are guessing that Mr. President who is also our Finance Minister missed that one juggling so many portfolios and projects!

Here is a little hint PPP, Bilateral Trade between China and Venezuela has netted more than US$7 Billion for our neighbor!

But maybe he will take a hint as his government and the rest of Caricom plans to face off with Brazil next week, don’t waste any more time!

Business Monitor International rankings

The recent (March 2010) issue of the BMI's Latin America and Caribbean Monitor gives Guyana a very low ranking for a number of areas. BMI has also provided a scathing outlook and its own projection of growth for Guyana.
A summary:

BUSINESS ENVIRONMENT
Guyana scores 38.1 in BMI's business environment ratings, ranking it 117th out of 167 states.

SUGAR
"According to Finance Minister Ashni Singh, sugar production will add 1.0 percentage points to real GP growth in 2010, in contract with our own more cautious stance on state-owned Guyana Sugar Corporation's growth potential. as a result, we hold to our 3.5% real GDP forecast for 2010."

BMI view on Government
"Domestic opposition to government intervention in the economy is becoming the biggest threat to the ruling People's Progressive Party/Civic (PPP/C) electoral hopes in 2011. with little chance of a constitutional amendment to allow President Bharrat Jagdeo to stand for re-election,t he party will be hard pushed to regain its majority, in our view."

BMI's view on Data and forecasts
"Our concerns over Guyana's fiscal woes have been exacerbated by the Government's 2010 national budget, which pledges a substantial uptick in infrastructure and social expenditure. If revenue flows fail to meet government's expectations - which we expect will be the case given that our own 3.5% real GDP growth forecast for 2010 is lower than Government's 4.4% forecast - the fiscal gap could be substantially above 2009 levels. Until we get a clear breakdown of the planned budgetary expenditure, we hold to our GY22.3bln (or 7.9% of GDP) central government deficit forecast.


UPDATE (WPG update)
WPG has been reliably informed that the Norwegian's LCDS promise is evaporating faster than the carbon emissions. The money will now be tied up in the World Bank's coffers until that institution is satisfied that proper accountability is in place for its use.

The LCDS fund was the main source of funding for the Government's fiber optic cable and the road to Amalia falls. Since that is now uncertain, we opine that Jagdeo will force Finance Minister to get Parliamentary release of funds for those projects.

With a clear majority in parliament, they will get what they want - resulting in greater deficits per the BMI projections.

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.

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...

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 !!!

Guyana Government cannot account for BILLION$ - Part II

Following our earlier blog in which we were contending that Government misappropriated over 100 million US Dollars in 2007 (cannot give account for it); other reports have been seen about the Health Ministry and Education Ministry financial irregularities.

The overall fraud and irregularities that have been exposed leaves us breathless. Shame on our Government! Shame on our Parliament! Shame on the opposition!

Is it time that we petition international agencies to investigate what is happening in Guyana. Cheddi Jagan cried to the world during the days of dictatorship. Who will cry out now?

Recap of the details on the Min of Education financial irregularities. For the previous blog on the >US$100million see link.
Min of Education: “failure to recover several millions of dollars in overpaid salaries, bank accounts with overdrafts of millions not being reconciled and overpayments to contractors among others.”
The failure to recover the overpaid salaries might be forgiven (though it is not right) since those who left the service also left the country. However:
- $78 million - bank account was overdrawn
- $4.3 million – outstanding ‘transactions’
- $2 million paid for questionable contract for TV ads (who is Ross
Enterprise?) – “All attempts to trace
this firm have been futile.”
- 1,146 teachers allegedly not registered for social security (NIS)
- $32 million overpaid to contractor (who?) for President’s College.
- $2 million paid for text books (to whom?), no books received.
- $23 million spent supposedly for Berbice Campus – no supporting documentation.

Guyana continues to despair as the powers that be continue to sweep every scandal under the carpet – and every of it financial irregularity takes place brazenly. Who will hold them accountable?

The question we have is with all this blatant corruption, why is this nation so silent?

Guyana Government cannot account for BILLION$

What is happening in Guyana? Has the PPP Government literally robbed Guyana of billions of dollar$ per year? Can we petition the international agencies as Cheddie did to track these millions of US Dollars?

Look at the accounts of the Government for 2007. Billions of Guyanese dollars cannot be accounted for. Assume the minimum amount of US$100 million is unaccounted for (stolen) in 2007... now multiply that by the number of years PPP is in Government.

Who will help Guyana? Is this country now totally lost?

The Auditor General report for 2007 shows numerous deficiencies and DELIBERATE falsification of accounts.
- Grants received by the Government not recorded. Therefore there is no trace of where the monies have gone or whose bank account deposited into.
- Contingencies Fund abused to pay expenses that do not qualify for such funding.
- $3.1B were drawn from the Fund by way of 115 advances and as at 31 December 2007, sixty-four of these advances totaling $1.459B remained outstanding.
- PLUS over 600 million in liabilities still on the books – add 600m to the 1.459 billion = 2.1 BILLION DOLLARS.
- Understatements in other areas.
- Consolidated Fund overdrawn by 47 BILLION dollars.
- 42 Inactive bank accounts
- The 42 inactive accounts had overdrafts of 686 MILLION dollars
- BILLION of DOLLARS used by the Government in 2007 and cannot be accounted for

Worth repeating: BILLION DOLLARS cannot be accounted for – 100 MILLION US DOLLARS?

Isn't Minister Ashni Singh a qualified Accountant? Well done Ashni!

God help Guyana.