Region 9 deducts NIS, employees’ tax

Nov 10, 2017 News, https://www.kaieteurnewsonline...s-nis-employees-tax/

…but auditors unsure where money went

In Guyana’s outlying areas, there are piles of evidence of the difficulty in monitoring how state resources are being expended.

The recently released Report of the Auditor General for 2016 is once again replete with instances and some of them are glaring.

For example, in Region Nine –Upper Takutu/Upper Essequibo area— state auditors found some deeply worrying things, including when it came to hiring workers.

While there were authorized 707 persons that the border region could hire, on the books there were 669 workers. Nothing much wrong here.

However, checks revealed that a sample of 12 new employees’ personal files found that pertinent documents including appointment letters, details of qualification, application letters, and valid police clearances were missing.

The region, in the report, promised to correct the situation.

It gets worse in the report. Employees of the state, by regulations, are required to be registered with the National Insurance Scheme (NIS) and assigned a number which is submitted to the office on assumption of duty.

An examination of the NIS register revealed that 43 employees were with temporary numbers whilst 60 were not registered and did not have any.

However, an examination carried out on documents related to deductions for NIS revealed that deductions were being made for persons without NIS numbers and those with temporary numbers. But there were no records as to where the monies were paid over to.

“Examination of the documents related to NIS contributions revealed that they were not paid over in a timely manner although an NIS office is located in the area. This is not in keeping with the NIS circular which states that all deductions for NIS shall be paid over to the agency on or before the 15 of the following month.”

But it seemed that problems of deductions from workers did not stop at NIS. It also happened for tax deductions for workers in Region Nine.

Audit scrutiny carried out on the records of the regional administration revealed that 105 employees were without a Taxpayers Identification Number (TIN) which is a requirement of all employees.

Audit examination carried out in September on the deductions file, revealed that deductions for December 2016 were not paid over to the Guyana Revenue Authority. However, an examination carried out on documents related to deductions of PAYE revealed that deductions were being made for persons without TIN numbers, and no records were provided for audit scrutiny as to where these deductions were paid over.

The region, in its defense, said that 11 of the temporary card holders and 27 of those without NIS numbers now have NIS numbers. Forty-seven are in receipt of TIN.

“Efforts are continuing to have everyone registered with NIS and have a TIN.”

Last year, the Regional Executive Officer, in charge of the purse strings, was Carl Parker. He was interdicted earlier this year pending a criminal court case.

Performing his duties now is Kerwin Ward.

The Audit Office, in its recommendations, said that the regional administration ensures that all employees are properly registered with the National Insurance Scheme and are assigned a Taxpayer Identification Number.

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