Latest update April 19th, 2024 12:59 AM
Jun 07, 2022 News
Kaieteur News – Regional administrations across Guyana have been in the habit of withholding public funds in bank accounts instead of remitting the monies to the consolidated fund or Treasury at the end of the year.
This issue was highlighted during the Parliamentary Public Accounts Committee (PAC)’s review of expenditure of the Regional Administration of Region Two (Pomeroon-Supenaam) for the years 2017 and 2018 on Monday.
According to the Auditor General report for the years 2017 and 2018, millions of dollars collected in the region, from the rental of equipment, buildings and toll fees, are routinely placed into three Republic Bank accounts. These monies were garnered from activities within the region– outside the budget that the region receives from the Government.
The Auditor General Reports has raised red flags where a total of $21 million was paid in advances to over 350 persons in the region from 1995 to 2018. It was also revealed that these advances were made to employees for transportation, meals, salary advances, miscellaneous works, activities and celebrations but these are already covered in budgetary allocation.
Members of PAC noted that the funds maintained in separate accounts from budgeted sum make it susceptible to abuse and corrupt use. However, Finance Secretary, Mr. Sukrishnalall Pasha explained that there is nothing in law that prohibits the regional agency from holding the money outside of the consolidated fund. He said, “they can use it for activities within the regions; to be on the safe side I would want to consult with the Attorney General for clarity but based on my reading there is nothing prohibiting an agency from holding the funds outside of the Consolidated Fund.
Pasha continued, “The general rule is that the unused sums should be placed back into the consolidated fund but there is an exception the exception is if there is activity that allows for those funds to be held outside of the consolidated then the region is allowed to do so. The constitution was not too explicit on this…”
PAC Chair, Jermaine Figueira explained that the issue is not an isolated one; a number of regions had been holding unused public funds in banks accounts instead of remitting the monies to the Treasury. “This is not an issue with Region two only; it has been happening with multiple regions…The audit office notes that similar practices were found in Regions Nine and Six… So we definitely the Attorney General’s Chambers to come in and give us some understanding here so that we could have some conclusion on this matter.”
As such, Figueira noted that the PAC will be forwarding the issue to the office of the Attorney General for clarity and guidance. Several members of the PAC were nevertheless convinced that the region was using revenue generated, apart from annual budget allocations, as a slush fund.
PAC member Ganesh Mahipaul was particularly perturbed. He noted from his understanding that all unused public funds should be returned to consolidated fund at the end of every year. Mahipaul was among those who sought more clarity on what the funds were used for. In response, Regional Executive Officer, Susanah Saywack, told the PAC that the decision on how the monies are used is done between herself and the Regional Chairperson, Vilma Desilva. Saywack said the monies were used to help people in the region; to replace laptops, assist with medical care and relocation of staff.
Minister of Parliamentary Affairs and Governance, Gail Teixeira was the first to put on record that the monies seem to be used outside of the purposes intended amounting to a “slush fund.”
Teixeira said among the major issue is that the monies are not declared as revenue at the end of the year and then form part of the regional budget. She said too that the monies are not turned over to the Consolidated Fund as is expected, which also raises serious concerns. “Persons have been delinquent too in having taken advances and not reimbursing and those persons are liable for charges of some kind,” Teixeira stated.
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Apr 19, 2024
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