Shaik Baksh collected tax-free rent to live in own home

May 29, 2016 News

The Internal Audit conducted into the several allegations of irregularities regarding the conduct of the

Former GWI Boss,
Shaik Baksh

former Guyana Water Incorporated (GWI) Chief Executive Officer (CEO), Shaik Baksh, revealed that he accepted rent to live in his own home – tax-free.

This represented a breach of the income tax act.
The Board of Directors approved rent for Baksh to live at his own home at Lot 16 Ixora Avenue, Eccles, East Bank, Demerara. The rent was in effect a non-taxable allowance contrary to the Income Tax Act.
The other allowances were also intended for him not to pay income tax as all expenses he incurred on behalf of the Company were refunded to him.
Baksh received $120,000 per month that included electricity; entertainment allowance of $70,000, and a duty allowance of $30,000.
The Internal Auditing Department stated that the former government Minister was entitled to 22 hours security services at his Eccles, East Bank Demerara home. This was stipulated under clause 3.3.5 of his employment contract.
However, the Internal Audit Department reported that Baksh employed two private security personnel despite being informed by the Director of Human Resources – Gale Doris, that GWI has a contracted security firm which provides this service.
The IAD concluded that the creation of these two positions was not approved by the Board; the recruitment process was carried out solely by Baksh who instructed the Human Resources Department to create personnel files, prepare employment contracts and make necessary arrangements for salary payment.
“It should be noted that the two security personnel were paid a basic salary of $44,000 and $16,000 to compensate for overtime ($120,000 per month).
This was cost effective (savings of $118,700 per month) compared to $238,700 – two Baton Security 22hrs at $350 per hour for 31 days – that would have been incurred using the contracted security firm.”
Further, the report revealed that these positions were not on the Company’s regular payroll or approved contract positions. Approval was granted by Baksh to pay salary increases for 2014.
The Internal Audit Department report was included in the most recent audit that was done on the agency which originated from a “special meeting” of the BOD on May 28, 2015 which dealt with allegations of irregularities committed by Baksh.
Other allegations of irregularities include misappropriation of cash advances for site visits, abuse of authority in using the Company assets, overriding company policies etc.
The IAD report showed that the Chief Executive Officer’s employment contract dated September 17, 2012 does not provide for compensation for medical expenses. However, an instance was noted where monies were reimbursed for a “claimed” on the job accident.
This accident was never reported to the Occupational Health and Safety Officer or the Human Resources Department nor was there any accident report prepared to justify payments.