…over $600M unaccounted for from Special Projects Account
In his 2016 report, Auditor General (AG) Deodat Sharma has found that $209 million have been unaccounted for from the University of Guyana’s Science and Technology Support Project, funded by the Government of Guyana (GoG) and the International Development Association (IDA) under Credit Agreement No. 4969-GY.
UG Vice Chancellor, Professor Ivelaw Griffith
In 2016, the sum of $906 million was allocated this project for curriculum reform; infrastructural design and research; infrastructure rehabilitation; equipping of science laboratories; drainage; internet network; multimedia equipment; and institutional capacity building at the University of Guyana. A supplementary provision totalling $411 million was approved, bringing the total allocation to one thousand, three hundred and seventeen million dollars ($1.317 billion).
“According to the Appropriation Accounts, amounts totalling one thousand, three hundred and eleven million dollars ($1.311 billion) were expended during the period under review. However, the records of the project reflected expenditure totalling one thousand, one hundred and two million ($1.102 billion), giving a difference of $209 million,” Sharma wrote in his report.
Security Grants
The sum of three hundred and two million, eight hundred and nineteen thousand dollars ($302.819 million) was expended on security services for nursery, primary, secondary and post-secondary/tertiary education, but the auditors examined eighteen schools and found that the bank accounts were not reconciled; security services were paid for in advance by the schools; there were no contractual agreements; and the cash books were not properly maintained by schools.
“In addition, amounts totalling three hundred and twenty-two million, eight hundred and twenty-nine thousand dollars ($322.829 million) were paid to eight private security firms for security services provided to 34 locations. However, contract documents and Tender Board awards were not presented for audit examination. Therefore, it could not be determined whether tender procedures were followed to select the security firms, and also whether payments were made in accordance with the conditions of the contract,” the report stated.
The Head of the Budget Agency has since stated that corrective measures would be taken, while the Auditor General has recommended that the Education Minister comply with the Financial Regulations.
Inappropriate spending
The AG has said that the Education Ministry operated a Special Projects bank account, into which funds from various sources — such as Guyana Lotteries Commission, Digicel, and refunds from the Permanent Secretary — were placed. At the end of the review period, that account had forty-six million, six hundred and twenty-one thousand dollars ($46.621 million). However, the report found that one hundred and seventy-three million, seven hundred and three thousand dollars ($173.703 million) were inappropriately spent from the account for furniture, anniversary celebrations, salaries and overtime, vehicle parts, and other expenses.
“An analysis of the expenditure revealed that a significant portion was related to the normal activities of the Ministry. This expenditure should have been met from budgetary allocations, and approved by the National Assembly. In addition, the Ministry breached Section 8 of the Procurement Act, as there was no evidence that Tender Board procedures were adhered to in the procurement process. Further, payment vouchers and relevant supporting documents were not presented for audit examination,” the report stated.
A further inspection of payments made from the Special Projects bank account revealed that four payments totalling one million, five hundred and ninety-five thousand dollars ($1.595 million) were made to meet expenditure of the Ministry for national celebrations, and the payment vouchers were not presented for audit examination. And two payments totaling five hundred and twenty-five million, three hundred thousand dollars ($525.3million) were expended on salaries and overtime for staff at the National Stadium, National Cultural Centre, Sophia Training Centre, and Kuru Kuru Training College without payment vouchers being presented to the auditors.
The Head of the Budget Agency has indicated that the payment vouchers would be made available for examination, and that corrective action would be taken to prevent possibly recurrence in relation to the purchases. However, the Audit Office has recommended that the MoE take immediate steps to ensure all unspent sums of money are refunded to the Consolidated Fund, and that all necessary measures to locate missing payments are taken.
Discrepancies
The report has also revealed serious administrative discrepancies with the Dietary Programme undertaken by the Education Ministry. For the period under review, twenty-one million, three hundred and seventy-nine thousand dollars ($21.379 million) were expended for the provision of hot meals to some 21,379 students of nursery and primary schools in several regions.
However, Sharma’s auditors discovered that nine students of the Karasabai Primary had stolen one million, eight hundred and two thousand dollars ($1.802 million) in 2017.
“In September, seven hundred thousand dollars ($700,000) were repaid, leaving one million, one hundred and two thousand dollars ($1.102 million) to be recovered. The parents of the children entered into an agreement to repay the amount stolen on a monthly basis commencing from April 2017… The matter in relation to the stolen money is presently engaging the attention of the court,” the report stated.
Meanwhile, at the Marauranau Primary School in Region Nine, the former headmaster misappropriated the sum of one million, five hundred and twenty-four thousand dollars ($1.524 million) in 2012, and the sum of two hundred and thirty thousand two hundred dollars ($230, 200) has thus far been recovered, leaving one million, two hundred and ninety-four thousand dollars ($1.294 million) outstanding.
The Finance Ministry has been informed of the incident, and action has been taken to have deductions made from the headmaster’s gratuity.
Additionally, the Auditor General’s report found that, for all the schools visited, there was no proper record maintenance; no records of inspection by the management committee of the school; no meetings were held by committee; treasurers kept unpaid balances in their personal possession, and bank accounts were not reconciled for the period under review.
