$38M budgeted for before economy became “cash strapped” – Harmon

Minister of State Joseph Harmon has said that Government is cash strapped, but the M that the administration is spending on furnishings had been budgeted last year.

In a brief telephone interview with Guyana Times on Saturday, he explained that the money was budgeted for spending in 2017 since last year, before Government had announced that it was short of money. According to Harmon, the two instances have no correlation, as they occurred in different time periods.

Government has declared that it is strapped for cash
Government has declared that it is strapped for cash

“You are talking here about something in the 2017 budget which was dented in 2016. So when you (talk) about cash strapped this year, we are talking about cash strapped and this (budget) happened in 2016,” he stated.

This was Harmon’s response to the public outcry over the administration’s spending of a whopping $38 million to acquire household items for the Ministry of the Presidency.

The revelation regarding this spending was made one day after he had declared at a post-Cabinet press briefing that the country was strapped for cash and needed to embark on cost cutting measures, such as recycling envelopes, in order to ensure money lasts.

“You have to be a little more careful in how you spend your money, so that it lasts. It means that you have to reuse envelopes. There are several measures which we will circulate to Government Ministries on how they can cut back on expenses,” the State Minister has outlined.

According to Harmon, “There are practical measures which will be used by the Government to ensure the austerity that I am talking about, and that the (money) which you have will last you longer, and that you don’t have to go back later in the year (to the National Assembly) for supplementary (funds). So it is really about being very sensible and using the resources which you have to the best of your ability.”

Some $38 million have been budgeted for the acquisition of various household items, ranging from beds to dining suites, for the Ministry of the Presidency (MotP).

This was disclosed in documents recently submitted to the National Assembly following questions posed by Opposition Member of Parliament Gail Teixeira during the review of the 2017 Budget back in December.

According to the document, “the objective of acquiring (these pieces of) equipment is to aid in the efficient attainment of the Ministry’s mandate.”

Among the items for which sums of money were set aside are: two beds valued $500,000; three wardrobes, to a total value of $300,000; dining suites for $2 million; five coffee tables valued at $875,000; two suites, to a total value of $1.1 million; two large refrigerators, costing $500,000; and eight television sets, costing $1.2 million. Sums of money were also budgeted for the acquisition of a brush cutter costing $100,000; a lawn mower costing $130,000; two sets of fans (27 and 28), totalling $1.1 million; five water dispensers, costing $375,000; and five electronic kettles, valued at $127,500. Other items to be bought include office supplies, security systems, and camera and camera equipment.

It was explained that these items will be used to outfit new departments, such as the Department of Environment, National Events, and the MotP; and to replace obsolete equipment in the administration and Office of the Climate Change Departments, in order to discontinue the rental of photocopiers and printers in the Cabinet Secretariat. Additionally, it was outlined that MotP will seek to regularise the operations of the Gaming Authority, which previously operated without any formal equipment or documentation of its business.

Guyana Times also understands that the MotP houses several living quarters, and these need to be equipped with wardrobes and beds.