Govt spent over $4B from disapproved funds

Finance Minister, Dr Ashni Singh

… GINA, NCN, CJIA beneficiaries

Despite the Opposition’s objection, the Government of Guyana has spent more than $1.5 billion on contentious projects and agencies such as the Cheddi Jagan International Airport (CJIA) Modernisation Project, the Amerindian Development Fund and the Government Information Agency (GINA).

In the National Assembly on Thursday, Finance Minister, Dr Ashni Singh presented a Statement of Excess on the Current and Capital Estimates totalling $4,553,761,991 for the period ended June 16. The $1.5 billion forms part of the $4.5 billion, which was presented to the House.

From the grand sum, capital estimates totalled $3.943 billion. While the Opposition would likely throw in its support for monies spent on the University of Guyana Student Loan Fund, Information Communication Technology (ICT), the Guyana Revenue Authority (GRA) and the Basic Needs Trust Fund, when the Finance Paper comes up for debate; fierce objections are anticipated when the controversial projects and agencies surface again.

Under the Public Works and Transportation Ministry, the Government has already spent $1.184 billion for the advancement of the CJIA Modernisation Project. The Opposition had disapproved the $6.7 billion allocated for the completion of the project.

An artist’s impression of the Cheddi Jagan International Airport Modernisation Project

Additionally, the Government has spent more than $306 million on the Amerindian Development Fund. According to the Finance Ministry, the expenditure was incurred in relation to Amerindian development projects and programmes.

In April during the consideration of the budget, the Opposition voted down the $1.1 billion that was allocated for the Amerindian Development Fund, after it was dissatisfied with the explanation given by the Amerindian Affairs Minister Pauline Sukhai on the Youth Entrepreneurship and Apprenticeship Programme (YEAP) and the Community Services Officers. According to the APNU and AFC, the Government is using monies set aside under the fund to advance their political agenda in the hinterland. On the contrary, Government had argued that the move by the Opposition to object to the $1.1 billion would have resulted in hundreds of young Amerindians being left jobless. The Opposition’s final decision had sparked days of protests in front of the Parliament.

Settling expenses

Meanwhile, $610.4 million was spent to offset expenses incurred under the Office of the President. The Opposition had also cut funding for the Office of the President in its quest to disapprove funding for the National Communication Network (NCN) and GINA.

The Opposition used its one-seat majority to disapprove $5.1 billion budgeted for the Office of the President. The A Partnership for National Unity (APNU) and Alliance for Change (AFC) had first slashed $1.335 billion for current Administrative Services budgeted under the Office of the President after questions were asked as to why NCN and GINA were subsidised in 2013, when the House had disapproved funding. They subsequently voted against the $3.846 billion allocated for capital projects, taking the total disapproved funds to $5.182 billion, out of a grand total of $6.078 billion budgeted for the Office of the President.

From the $610.4 million, which represents the current estimates, $66.4 million in subsidy was given to GINA, while NCN has thus far received $32.6 million. On Wednesday, Head of the Presidential Secretariat, Dr Roger Luncheon had argued that the Finance Minister in his move to reinstate disapproved funds had relied heavily on the Constitution and the High Court Ruling made by acting Chief Justice Ian Chang.

According to Dr Luncheon, Minister Singh has by no means deviated from the norm. “The Constitution specifically addresses expenditure and shortages inadequacy for agencies in discharging their work programme in any fiscal area. The Constitution does offer remedies that we have collectively termed restoration… the constitutional court ruling has been used by this administration, used by the Minister of Finance to undo the unconstitutional acts that have been perpetrated by the parliamentary Opposition,” the Cabinet Secretary said as he sought to justify the actions of Dr Singh.

According to Dr Luncheon, by the end of the fiscal year, there is a possibility that the entire $37.5 billion, which was disapproved, could be restored.