Govt commits to fixing weaknesses in public financial system – Accountant General

– says recommendations in Auditor General report will be taken seriously

Accountant General Jennifer Chapman has assured that the Government remains committed to fixing the weaknesses often highlighted by the Audit Office of Guyana when it comes to the public financial system.
During the handover of the Auditor General’s 2023 report on Monday at the public buildings, the Accountant General highlighted the importance of the occasion. According to Chapman, the government will not shy away from implementing any recommendations made in the report, when it comes to public finance.
Chapman noted that any weaknesses identified by the Auditor General give them a chance to improve accountability and transparency. The Accountant General noted that they have a responsibility, once public funds are being spent, to ensure they are spent in an accountable and transparent manner.
“This occasion ensures that we continue to strengthen accountability across the government agencies. The Auditor General’s report highlights to us our weaknesses within our accounting system.”
“However, those weaknesses we use to ensure that we improve accountability and transparency across government. Public funds being spent, one of the pivotal characteristics of spending public funds is accountability and transparency,” the Accountant General stated.
According to Chapman, the Finance Ministry and related agencies, are committed to strengthening their internal systems. She also thanked the Auditor General, Deodat Sharma, for his work.
“We continue to ensure the Ministry of Finance, the Audit Office and all the other accounting offices, to ensure that we continue to strengthen the accounting system. And AG, I would like to thank you for bringing out our weaknesses and highlighting all those breaches, so that we can continue to improve, to ensure that public funds are spent in accordance with the purpose it was intended for,” she further said.
Following the consideration of the Auditor General’s report and the Public Accounts Committee’s (PAC’s) own report, the Government will have to submit a Treasury Memorandum. This includes a commitment, in writing, to either adopt or reject the AG’s many findings and recommendations.
At the handover of the 2023 report, Auditor General Deodat Sharma had been largely mum on what the public could expect from the report since it only becomes a public document when laid in parliament. However, he did share a crucial observation.
For years, the Audit Office has flagged overpayments being made by Ministries and regional offices, to employees and contractors alike. According to Sharma, however, the report documents improvements in this regard, with all prior year overpayments being recovered.
In the previous Auditor General report, which covered the 2022 fiscal year, it had been reported that the Government was able to recover over $50 million in overpayments, without dispute – a first in Guyana’s history.
According to the 2022 report, a total of 466 contracts undertaken by Ministries and the regions were examined for that year. The Auditor General had found that as much as $52.8 million in payments were made on measured works for 33 of these contracts.
“Sums totalling $14.146 million were in relation to Ministries of which the entire amount was recovered at the time of reporting, whilst sums totaling $38.681 million was in relation to Regions One, Two, Five, Six, Eight and 10 of which $17.121 million remained outstanding in respect of projects for Regions One and 10,” the report had stated.
The People’s Progressive Party/Civic (PPP/C) Government has been expressing its plans to review the entire public procurement system, saying that it will not be defensive about fraud or corruption scandals.
Vice President Bharrat Jagdeo has been very vocal in warning persons, especially state employees, that they would face the consequences if they got caught in any corruption.