Ministry of the Presidency continues financial breaches
October 17, 2016 By Editor
AG 2015 Report
– AG bemoans non-implementation of prior recommendations
Breach of financial regulations, overpayments to contractors, late or non delivery of equipment and other supplies continue to plague the Ministry of the Presidency, were among some of the pertinent findings of Auditor General Deodat Sharma, during his examination of the Public Accounts of the A Partnership for National Unity/Alliance for Change (APNU/AFC) Government’s first year in office.
Auditor General Deodat Sharma
Auditor General
Deodat Sharma
Among some of the findings in Sharma’s Report, laid in the National Assembly last Thursday by House Speaker Dr Barton Scotland, is a $155 million allotment or the procurement of office equipment, of which $144.8 million was expended, including $19.108 million which was paid to an overseas supplier in December 2015 for the supply and installation of CCTV systems at the National Intelligence Centre.
However as of September 2016, the items were still not delivered.
Meanwhile, the remaining $125.8 million was used to procure security systems, computers and laptops, office furniture, air conditioning units and office equipment for the ministry.
According to the audit report, a physical verification was carried out to determine the receipt, marking and location of the items purchased and items totalling $14.905 million could not be located.
In face of this, Sharma recommended that the ministry implement measures that will ensure strict compliance with stores regulations.
Overpayments
Meanwhile, the report shows that the Ministry sole sourced a contractor to construct a perimeter fence and security lights at Building E Castellani Compound at a cost of $12 million. It said that at as December 2015, some $11.679 million was paid to the contractor, but based on a physical measurement taken on site and calculations; there was a $2.3 million overpayment.
The Auditor General has urged the Ministry take immediate actions to recover the overpayment and ensure that construction works are done in keeping with specifications.
Under the department of Public Service, it was revealed that the department’s records show that it expended $772.1 million on training, including $271 million for payment of tuition, airfare, accommodation, stipend, allowances, etc, for students studying overseas.
“Audit examination of the Register of Students revealed that pertinent information, such as benefits and allowances payable to the students, were not recorded. In addition, it was also observed that all the institutions to which the Ministry pays tuition fees were not recorded in the register. In the circumstance, reliance could not be placed on the accuracy of the information in the Register,” the report stated.
The Auditor General also stated that at the time of the audit, matters involving a $120.7 million expenditure for payments of Financial Assistance for Public Service Performance Evaluation in the ten Administrative Regions were attracting attention of the Courts; whilst, the Audit Office was also conducting an investigation into a $18.9 million payment for financial assistance for students studying in Cuba.
Misuse of Lotto funds
The Auditor General also revealed that the Ministry utilised millions of dollars in revenues garnered from the Lotto Fund for the construction of the controversial D’Urban Park, Georgetown, without Parliamentary approval.
Government earns 24 per cent of the proceeds from the Guyana Lottery Company, but this money is paid into an account controlled by the Ministry of the Presidency and spent with the approval of Cabinet.
The AG said that at the end of 2015, the deposits to the account amounted to some $1.8 billion. However, the Government transferred $1 billion of that money to the Consolidated Fund, while the Ministry of the Presidency held onto more than half a billion dollars, of which it spent some $305 million on various activities including $36.5 million on the rehabilitation of D’Urban Park; $63.7 million on Mashramani celebrations and another $51 million was utilised for ‘music’.
Other activities funded by the Ministry of the Presidency using the Lotto proceeds are related to Emancipation, Amerindian Heritage and Carifesta, among other celebrations.
Many of the issues highlighted in Sharma’s report are not new and recommendations were made in the past to address these, however, it seems that very little action has been taken in this regard.
“The Audit Office continues to view the lack of action towards the implementation of prior recommendations with serious concerns and suggest stringent action be taken to address these findings, especially those related to overpayments on construction works, lack of weak internal controls, including poor record keeping and breaches of relevant Legislation,” he stated in his summary of recommendations.

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