Govt spends over $300M on audits and CoIs
…no clear rationale offered as PM, Governance Minister stonewall
By Michael Younge
The bountiful wastage of taxpayers’ monies being expended to finance the numerous Commissions of Inquiries (CoIs) and State Forensic Audits, and “investigations” are currently bleeding the treasury of possibly hundreds of millions of dollars. Concerns have been mounting over the profligate spending of state funds on what has been labelled the government’s “fishing expeditions”, which will in no way contribute to the development of the country or benefit the general populace.
In lieu of the government’s stonewalling on providing information from the inside, this newspaper has had to rely on information in the public realm. Based on rough calculations with those figures and their extrapolations, government is expected to fork out some $300 million altogether to pay Commissioners for the various CoIs and Auditors for the various audits into state agencies. This may also cover the cost incurred by retaining staff for the various commissions. In addition to their salary, Guyana Times understands that these individuals are being provided with meal allowances and that their travelling expense are covered by the government for the course of the operations they were retained to perform. Prime Minister Moses Nagamootoo had promised to provide Guyana Times with the cost for all the CoIs and forensic audits, but to date the information is yet to be delivered. Nagamootoo publicly committed to providing this information when asked by a Guyana Times reporter during a recent post-cabinet media briefing. Nagamootoo had publicly instructed Public Information Officer Imran Khan to email the information to this newspaper but this never happened. Follow-up enquiries to receive the information proved futile since Khan claimed he is not in possession of the requested data, and that he is unsure when he will be able to get it for dissemination. Guyana Times also contacted on official from the Finance Ministry who stated the Ministry is not in possession of the cost for the CoIs (that this information will be available at the respective Ministry). In relation to the cost for the State Forensic Audit, the official declined to disclose, citing that the information will be made available in Parliament. Subsequent to that interaction, Guyana Times requested the same information from Governance Minister Raphael Trotman during a post-cabinet media briefing who stated he is not in possession of the information. He however assured he will make contact with the Finance Ministry and disclose the information in due time.
The breakdown of the estimated $300 million costs shows that the inquiry into the Guyana Sugar Corporation (GuySuCo), which consisted of 11 commissioners, cost the state $71 million. Additionally, the forensic audits into about 30 government agencies will cost more than $50 million. According to information already existing in the public domain, government will be spending some $50 million to pay handpicked auditors Christopher Ram and Anand Goolsarran for their audits (additional benefits were excluded from this calculation). Some of the CoIs launched are the Public Service, GuySuCo, Education Sector, and the Mining Sector. The state forensic audits have been launched into more than 30 government agencies.
Not clear on reasons for audits Making matters worse, no clear rationale has been proffered by government for the reasons of these various investigations into these agencies. Junior Finance Minister Jaipaul Sharma had initially told Guyana Times the CoIs were to “satisfy donors”. Sharma explained that one of the reasons the new administration is conducting these audits is to meet the demands of the international community. He explained that before the APNU/AFC coalition went into government, the international community had indicated several expectations they have of the new government: “The demands for this new Administration are a lot. We have to fulfil these demands, in areas of accountability and transparency… We aren’t doing this because we want to spend money or we want to witch hunt anybody… it’s a demand and request from these agencies that transparency and accountability must be available.” In another interview, Sharma noted that the reason for the audits were for internal purposes so the government could develop an understanding of the workings of the various agencies. His exact words here, “these are for internal purposes.”
Reports will be shelved It is the contention of many that the reports emanating from these various undertakings will not be utilised but rather just be shelved and gradually be covered in dust. Opposition Leader Bharrat Jagdeo had previously concluded that the state forensic audits and CoIs are “a total waste” of taxpayers’ monies. He drew the comparison that while millions are being expended behind “fishing expeditions, ordinary citizens cannot even benefit from a reasonable salary increase.” Jagdeo too expressed that most of the reports coming out of the inquiries and audits will not be used by the administration or relevant authorities; therefore, millions of dollars are basically being pumped into nothing: “I am betting you that these reports will sit on some shelf and will not serve any of the real problems that our people now face.” On more than one occasion, Jagdeo had urged the government to give up on the chase and focus on issues of the people instead, contending that the audits and inquiries are not benefiting anyone: “I have one message to the government – get on with the business of managing our country, people out there need a clear signal where this country is going.”
Extravagant spending Numerous comments are being made about the extravagant spending embarked upon by this administration since assumption to office. Millions have already been spent on the President’s inauguration ceremony and birthday bash. More millions are being spent on the upcoming 50th Independence anniversary celebrations both in Guyana and New York. Further, government ministers have awarded themselves a hefty salary increase. All of these have occurred as the country is clearly now in the midst of a recession in which economic activity has ground to a halt.