Durban Park, GDF advances violate financial laws – Auditor General

Advances in excess of half a billion dollars from the Contingency Fund by the coalition A Partnership for

National Unity/Alliance For Change (APNU/AFC) Government, that was used on the Durban/Jubilee Park project, should not have been made since it would be in violation of the provisions of the Fiscal Management and Accountability Act (FMAA).
This is according to Auditor General Deodat Sharma, who in a brief interview with Guyana Times on Saturday, indicated that while he has not seen a copy of the Financial Paper, the fact that monies had already been allocated for the project in the 2016 Budget meant that it could not have been an unforeseen expenditure.
Government in its 2016 Budget had allocated in excess of $70 million toward the project, but according to Financial Paper 1/2016 which represents in excess of $930 million in advances made from the Contingency Fund, in excess of $400 million of that money went towards the Durban Park project.
Several millions more were allocated to the Guyana Defence Force (GDF) for activities related to the 50th Independence anniversary celebrations but this too appears to be in violation of the FMAA, which governs how the Government could access and spend taxpayers dollars from the Contingency Fund – a sub fund of the National Treasury.
The Auditor General told Guyana Times that had the expenditure been related to security provisions, then this would have satisfied the criteria as set out in the laws.
Sharma said there is no way the expenditure could be justified as urgent and unforeseen since planning for the activity would have commenced some time ago.
The Administration, he said, knew it was preparing for the Independence celebrations as is evident in the numerous allocations already made in the Appropriation Act (Budget 2016) for this year.
Under the FMAA, “The (Finance) Minister, when satisfied that an urgent, unavoidable and unforeseen need for expenditure has arisen – (a) for which no moneys have been appropriated or for which the sum appropriated is insufficient; (b) for which moneys cannot be reallocated as provided for under this Act; or (c) which cannot be deferred without injury to the public interest, may approve a Contingencies Fund advance as an expenditure out of the Consolidated Fund.”
Finance Minister Winston Jordan on Thursday presented to the National Assembly, a breakdown of almost $3 billion, which the Administration has begun spending in addition to the 2016 National Budget.
The expenditure has since revealed that in excess of $406 million was used for the completion of the Durban Park Development Project to facilitate the hosting of Guyana’s 50th Independence anniversary celebrations. This is in addition to the $73 million that had already been allocated in the National Budget for the Durban Park project, under the Public Infrastructure Ministry.
The Guyana Defence Force (GDF), according to the Financial Paper presented by Minister Jordan, was the recipient of substantial sums of money, in addition to what was voted for in the 2016 Budget.
The document revealed that $20 million was used by the GDF “as provision to offset expenses for the procurement of maps and writing materials which aided in the development of Orders and other related documents in support of the 46th Republic anniversary celebrations, 50th Independence anniversary celebrations and intensifying operation DRAGNET.”
The GDF also benefited from an additional $54 million, and according to the Finance Minister’s breakdown, this money was utilised for “operational readiness of ranks for parades that ensured the success of operation DRAGNET over the 46th Republic day and 50th Independence anniversary celebrations.
The House is scheduled to convene its final session tomorrow ahead of its 2016 recess, at which point, it is expected to consider and vote on the supplementary provisions.
While in Opposition, the APNU/AFC coalition had consistently criticised the then People’s Progressive Party/Civic (PPP/C) Administration for its resort to the Contingency Fund, as being reflective of bad budgetary planning in addition to an abuse of the fund.
During 2014, the then PPP/C Administration under the hand of Finance Minister, Dr Ashni Singh, had resorted to extra-budgetary measures to the tune of $4.5 billion; monies the then APNU/AFC had labelled ‘illegal spending.’