Sharma says… Audit Office to employ private auditors to bring State agencies’ books up-to-date

Mar 12, 2023 News

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Kaieteur News – The Audit Office of Guyana has issued a public advertisement inviting chartered accountants to apply to be recommended for engagement by the Auditor General to examine and audit the accounts of public corporations and other bodies.

In an advertisement published in Saturday’s edition of the Kaieteur News, the Audit Office of Guyana said that by virtue of Part IV Sections 18-23 of the Audit Act 2004, the Auditor General “invites applicants from Chartered Accountants in public practices to examine and audit on his behalf the accounts of Public Corporations and other bodies in which controlling interest vests with the State.”

The Audit Office has listed 31 government agencies to be audited: Maritime Administration Department (2016), President’s College (2020), Hinterland Electrification Company Incorporated (2021), Kwakwani Utilities Incorporated (2021), Mahdia Power and Light Company Incorporated (2021), Port Kaituma Power and Light Company Incorporated (2021), Guyana School of Agriculture (2021), Guyana Mining School and Training Centre (2021), National Data Management Authority (2021), Mabarama Power and Light Company Incorporated (2022), Central Housing and Planning Authority (2022), Guyana Lands and Surveys Commission (2022), Guyana National Bureau of Standards (2022), Guyana Rice Development Board (2022), Transport and Harbours Department (2022), University of Guyana Pension Scheme (2022), Atlantic Hotel Incorporated – Marriott Hotel Guyana (2023), Guyana Marketing Corporation (2023), Guyana National Newspapers Limited (2023), Guyana National Shipping Corporation Limited (2023), Guyana Post Office Corporation (2023), Guyana Power and Light Incorporated (2023), Guyana Civil Aviation Authority (2023), Guyana Forestry Commission (2023), Guyana Geology and Mines Commission (2023), Guyana Gold Board (2023), Protected Areas Commission (2023) and the Guyana Sugar Corporation Incorporated (2023).

The proposals for those audits coming under the Auditor General’s Office are to be sent to the Finance Secretary (Chairman of the Select Committee), Ministry of Finance with a copy and supporting documentation to be addressed to the Auditor General, Deodat Sharma on or before March 18, 2023.

Auditor General Deodat Sharma in an invited comment told this publication that the provision to contract out audits is catered for in the law. He denied there being a shortage of staff or funds to undertake the audits and explained that the process had been employed to bring up-to-date, several agencies that would have had their books in arrears.

Sharma, in fact, used the occasion to reiterate that his agency’s regular ongoing audits are up-to-date and reassured that the move to employ the private auditors was merely to bring those State agencies that would have defaulted, up-to-date.

The audit office was established to provide and regulate such other matters connected with or incidental to the independent auditing of the finances of Guyana.

Among the 31 agencies listed by the Audit Office, is the controversial Marriott Hotel Guyana, which is in fact State owned and comes under the ambit of Atlantic Hotel Inc. Its 2023 account will be audited by a private firm.

The Central Housing and Planning Authority (CH&PA), which falls under the Ministry of Housing and Water, an entity that has in recent years seen its annual budget balloon since its work programme expanded to include, roads, bridges and other infrastructure works is also listed for external audits.

Two other key State agencies for which the Audit Office is looking to have private Chartered Accountants audit, are the Guyana Power and Light Incorporated (GPL) and the Guyana Sugar Corporation (GuySuCo).

The Power Company is among the key importers of fuel into the country as well as country’s main electricity provider, paid for by the consumers to the tune of billions annually.

The cash strapped GuySuCo has also been a source of public consternation over its performance taking into account the billions being pumped into the industry from the treasury even as its production costs continue to be higher than its total revenue. This means that the entity has been running, and continues to run accumulating financial losses yearly.

Additionally, the work of the Guyana Gold Board—the state entity responsible for the purchase of all gold mined in Guyana—will also be contracted out to private hands.

The Guyana Forestry Commission (GFC), another of the government agencies to handle large transactions involving state resources, will also be audited by a private firm.

Meanwhile, the Audit Office has issued an Invitation for Bids (IFB) for “eligible and qualified Chartered Accountants in public practice to audit and report on the financial statements, account and other information relating to the performance of the Audit Office for the period January 1, 2022 to December 31, 2022.”

The advertisement, also published in Saturday’s edition of the Kaieteur News, said that “In accordance with Part VII Section 44 of the Audit Act of 20023, it is the Public Accounts Committee (PAC) of the Parliament of Guyana that the invitation was issued.

The bidding documents are to be deposited into the National Procurement and Tender Administration Board, Ministry of Finance’s tender box on or before 9:00am on April 4, 2023.

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• Auditor General, Central Housing and Planning Authority, Deodat Sharma, Guyana Mining School and Training Centre, State

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