The APNU + AFC Coalition Government, through the Minister of Finance, have commissioned a number of forensic audits of the accounting systems and operations of a number of ministries, government departments and state agencies. A number of accountants/auditors in private practice, including some very critical of the PPP/C Administration, have been appointed by the Minister of Finance to conduct these forensic audits. Whatever may have been the reason proffered for public consumption, it is obvious that these audits were designed to unmask and uncover the “massive corruption” which those political parties led the nation to believe existed under the PPP/C administration. Recall that every day they preached about corruption in public office; about lack of transparency and accountability in Government; about billions of dollars being siphoned off from contracts and about contracts being given to friends, family and cronies in a corrupt manner. Indeed, Khemraj Ramjattan concocted a bizarre theory that 25% of the National Budget was being stolen “as kickbacks”. According to Mr. Ramjattan, once the stealing stops, that money would be used to solve all of Guyana’s problems. Aided and abetted by a complicit media fraternity, headlines after headlines cascaded the television newscasts and across the front pages of the newspapers. This daily diet of political propaganda and untruths were rammed down the throat of the population. Many drank the cool aid both dutifully and blindly.

No mountain of corruption found; instead 60 billion “discovered” Shortly, after APNU + AFC assumed office and did not find the “mountain of corruption” that they bellowed so garrulously about daily, and with the risk of being publicly embarrassed on this issue, they were forced to seek expert assistance as they embarked upon a journey, like Christopher Columbus, to discover this “massive corruption” about which they publicly prattled. This is the reason why they appointed over a dozen forensic auditors to search for this “mammoth corruption”. After nearly three months, and with help of over a dozen audit experts, all that they have been able unearth is some gallons of gasoline missing and a few used vehicles which they alleged were wrongly sold. On the other hand, instead of finding funds missing, over 60 billion dollars were “discovered” deposited in local commercial banks in the names of the Ministries or department to which they relate. These accounts are part of the accounting records of those Ministries and departments and were audited by the Auditor General, yet the bizarre label of “private accounts” were attached to them, conveying the wrongful and scandalous impression that these monies were illegally placed in these accounts in the names of individuals. My understanding is that these monies were deliberately deposited in the commercial banking system for fiscal flexibility and to add liquidity to the local banking system. In any event, statutes creating these agencies permit these monies to be held in these accounts. Therefore, there is absolutely nothing wrong with these monies being deposited in the commercial banks. The whimsical decision to withdraw 60 billion dollars from these accounts in the commercial banks were, therefore, understandably met with objections from the Private Sector Commission because they understand the far reaching ramifications it is likely to have on the banking sector and indeed the economy. At this juncture, I feel compelled to point out that I do not doubt that there is and was corruption in the public sector. Indeed, I know there is and there will always be. Therefore, the forensic audits will uncover incidents of corruption. But I dare say that they will be unable to find corruption of the magnitude and with the prevalence which the APNU + AFC led the nation to believe existed under the PPP/C administration.

Unconstitutionality and illegality of the auditors and the audits More importantly, I submit that the recruitment of the forensic auditors and the audits themselves are unlawful and unconstitutional and can be classified as acts of corruption in themselves. It is beyond dispute that those auditors were handpicked by the Minister of Finance without any public procurement process embarked upon. The costs of these audits will certainly run into millions of dollars. The Procurement Act mandates the Government and indeed every public officer and state agency to procure goods and services only in the manner outlined in the Act. The process outlined in the Act is the system of public tendering and competitive bidding to be administered not by a Government Minister, but by the National Tender Administration Board. This mandatory statutory process was wholly ignored by the Minister of Finance and millions of dollars of services have been contracted to audit, ultra vires and in breach of the laws of Guyana and persons were simply handpicked by the Minister of Finance and given jobs. There was absolutely no public tendering. This is what is called “sole sourcing”, a concept that was vehemently criticized by the very persons who now practice it. The situation is compounded by the fact that some of these auditors are known cronies of the APNU + AFC. This is akin to one selecting one’s own judge to hear one’s case; an absolute vulgarity by any standard. The other fundamental issue which I wish to address is the constitutionality or lack thereof of these audits. Article 223 of the Constitution of Guyana provides “the public accounts of Guyana and of all officers and authorities … shall be audited and reported on by the Auditor General … or any person authorized by him … and shall have access to all books, records, returns and other documents relating to those accounts”. It is public knowledge that these forensic auditors were not appointed or authorized by the Auditor General. Indeed, the entire audit exercise is ministerially driven and the Auditor General had nothing to do with it. I therefore submit that both the appointment of these forensic auditors and the forensic themselves are unlawful, illegal and unconstitutional. I surmise that the audit fees are expected to be over 50 million dollars. These are monies which will be paid to auditors who were unlawfully hired o engage in an unconstitutional exercise. This may very well be the scandal of the decade.

Mohabir Anil Nandlall MP, JP. Attorney-at-Law