Speaker concerned about Govt’s continued abuse of “emergency fund”

Speaker of the National Assembly, Raphael Trotman, has said that he is “worried” about the government’s continued

Speaker of the National Assembly, Raphael Trotman

abuse of the Contingency Fund, specifically the Minister of Finance, Dr. Ashni Singh.
The Contingency Fund is a reserve of money set aside to cover emergencies. The Fiscal Management and Accountability Act (FMAA) sets out a criterion for what situations can qualify as an emergency and as such warrant use of funds.
If Government deems a situation an emergency, they would use the funds. The Parliament would then examine during a sitting whether the situation for which the funds were used was actually an emergency according to the law.
The Public Accounts Committee (PAC) recently concluded its examination of the 2010 and 2011 Auditor General reports where numerous financial discrepancies were highlighted.  Some ministries, according to the PAC Chairman, Carl Greenidge, still have a problem with effectively addressing certain irregularities as cited by the Auditor General. Particularly, he noted, the Ministry of Finance is still unable to deal adequately with three chronic problems, one of which is the continued abuse of the Contingency Fund.
The Auditor General, in his 2012 report, said that advances continued to be issued from the Contingency Fund, which did not meet the required criteria for such advances, resulting in $95.661M being drawn from the Fund and utilized to meet expenditure that did not meet the eligibility criteria as defined in the Act.
The PAC Chairman said that Secretary to the Treasury, Nirmal Rekha, seemed unable to clarify why this continues to happen.
Trotman said that as a member of the Parliament, it is imperative for politicians to uphold the Constitution.
“But I must commend the PAC for discharging its functions. It is doing a lot of work.  However, it is really making no sense if the recommendations of the PAC are not going to be adhered to by the government.
“This flagrant disregard for their findings is a matter of serious concern and Government is expected to bring its self in compliance or else the system will be broken and that is not what the people voted for,” the Speaker concluded.
The PAC Chairman had also stated that there remains a significant number of applications made for the Contingency Fund that the Auditor General deemed to be outside the criteria.
“They are not adhering to the law and what has to happen is to determine what happened with the expenditures not approved by the National Assembly.

AFC Leader,
Khemraj Ramjattan

“Rest assured that this matter will be followed up by the PAC. With what has happened thus far with the funds, the Minister should be charged. The PAC and the National Assembly will make a determination on what will be done in this regard.”
Leader of the Alliance for Change, Khemraj Ramjattan, said that the National Assembly is the first device or mechanism for which contingences can be protected from abuse.
The politician said, “The (government) has been abusing their understanding of the criteria of an emergency under the Fiscal Management and Accountability Act.
“When we run to the Fund it is only to be used for emergency cases, like if there is a serious flood in Mahaicony and we need to remove citizens, money would be used in that case. But I understand that they are using the Contingency Fund to relieve the National Communications Network.
“I would further stress for President Donald Ramotar to assent to the amendment made to the FMA Act.
“The amendment seeks to clarify a part of the Act which has to do with officers who can be prosecuted for the abuse of the Fund. But it is the Minister we understand to be giving such directions.
“He gives the permission for the money to be used and as such he needs to be held accountable. The President by not assenting to this amendment is also condoning this and allowing criminality to continue.
“I am begging the people of this nation to understand that it is their money that is being abused and to realize what kind of government they have,” Ramjattan said.