AG Report 2021: Govt implemented 72% of prior year recommendations in 2021

– shows just 17% of recommendations from AG implemented back in 2019

The 2021 Auditor General report was on Monday laid in the National Assembly. In it, it is revealed that in the year 2021, the first full year with the People’s Progressive Party/Civic (PPP/C) Government in power, over 70 per cent of prior year recommendations were implemented.

Every year, the Audit Office of Guyana makes recommendations in its report on how to improve the system so that financial and other breaches do not keep reoccurring. Back in 2020, 548 recommendations were made. According to the 2021 Auditor General report, 397 or 72 per cent of these recommendations have since been fully implemented.
Meanwhile, 92, or 17 per cent of these recommendations were partially implemented, and 59 or 11 per cent were not implemented at all. It is a dramatic improvement, because, in 2020, only 38 per cent of prior year recommendations were fully implemented.
In the 2019 report, a mere 17 per cent of prior year recommendations were fully implemented. Auditor General Deodat Sharma had previously had cause to complain that a mere 24 per cent of the 454 recommendations made in 2017 were implemented by the then Government.
“In many instances, recommendations are repeated each year without appropriate action and as a result, weaknesses and issues that impacted negatively on Government’s governance and accountability mechanisms continue to occur.”
“Once again, I encourage the Government, through the Ministry of Finance, the Accountant General’s Department, and the respective Heads of Budget Agencies to take appropriate actions and put measures in place to address these recommendations,” the AG had said.
Some of the annual issues on which the Audit Office has been providing recommendations over the years include overpayments. According to the Auditor General, breaches of several relevant legislations, which include the Stores Regulations, the Fiscal Management and Accountability (FMA) Act, and Circularised Instructions, continued to dominate the findings. In fact, Sharma noted that these recommendations are viewed with grave concern.
Sharma found that a total of 411 contracts were examined in respect of the Ministries and Regions for the year under review. Overpayments amounting to $52.996 million were made on measured works on thirty-seven contracts administered by Ministries and Regions in 2021.
“Sums totalling $14.853M were in relation to Ministries of which the entire amount was recovered at the time of reporting. Whilst sums totalling $38.143M was in relation to Regions of which $21.046M still remained outstanding in respect of four projects for Regions 7, 9 and 10,” the AG said in the report.
The findings in the report show that improvements are being made at the procurement level because in 2019, overpayments amounting to $199.381 million were recorded with respect to four contracts administered by the Ministry of Finance, Ministry of Public Telecommunications, Guyana Defence Force and Transport and Harbours Department.
“Included in the $199.381M are amounts totalling $145M and $25.529M, which were overpaid on the rehabilitation of the Leguan Stelling, and expansion of offices at the Civil Defence Commission Headquarters, respectively,” the 2019 report found.