AG report calls out Govt for accepting gifts without documenting

– urges MoF to ensure compliance with rules

The Audit Office of Guyana has stumbled upon a number of cases during 2018, where Government Ministries and agencies would have collected millions of dollars’ worth of gifts from various sources, but then failed to properly account for them.

This is contained in the 2018 Audit Report. According to Auditor General Deodat Sharma in his report, miscellaneous receipts totalling $2.8 billion was understated; though by an undetermined amount.
The AG noted in his report that Section 34 of the Stores Regulations 1993 states: “all gifts received shall be subject to normal store-keeping and received stores accounting procedures and the procedure set out in the regulations 16 to 19 inclusive shall apply.”
It goes on to say that “a Gift Register in Form 18 shall be maintained by the Storekeeper, and the Permanent Secretary shall furnish the Secretary to the Treasury (now Finance Secretary), the Accountant General and the Auditor General information relating to all gifts received from time to time.”
The AG noted that despite evidence of the Government receiving numerous gifts throughout 2018, there was no evidence of adherence to the procedures set out in the law to ensure transparency and accountability.
“As a result, the amount of $2.800 billion representing Miscellaneous Receipts as at 31 December 2018 was understated by an undetermined amount,” the report also states. In its response, the Ministry of Finance did not dispute the findings but noted that steps are being taken to address the lapses.
“The accounting for gifts in accordance with the laid down procedures shall continue to engage the attention of the Ministry of Finance. Three Circulars have already been issued in which the guidelines are clearly set out,” the Ministry said. In its recommendations, the Audit Office urged the Ministry to implement strict measures to ensure compliance with its circulars.
Besides the Ministry of Finance, the Auditor General also cited the Ministry of Public Telecommunications for not adhering to the rules. According to the Audit Office, a Gift Register was not maintained by the Ministry.
“This is a breach of Section 34 of the Stores Regulations of 1993. Furthermore, we could not verify whether proper control was exercised over the use of donations received,” the Audit Office explained.
While the law and the Auditor General have oversight for gifts received on behalf of the State, public officials receiving gifts on their own behalf is one of the things addressed in the ministerial code of conduct, which has nevertheless been criticised as being ineffective.
The code of conduct is made up of 11 Articles. Article One prohibits public officials from taking bribes, while Article Two focuses on discrimination. Article Three prohibits public officials from accepting “any gift, benefit or advantage from anyone, [except] personal gifts from a relative or friend”. This provision, the code had stated, does not apply to gifts received on behalf of the State.
Article Nine prohibits public officials from accepting “lavish or frequent entertainment” from any person or entity that the Government has or may have dealings with. This, the Article notes, includes invitations to sporting events and concerts.
Article 10 prohibits officials from using their office in an improper manner for personal gain, while the final Article forbids anyone in public life from having outside employment “except with the written consent of the relevant authority”.