No guarantee of stopping overpayments to contractors – Finance Secretary

…assures “we will recover overpayments on contracts”

With the 2017 audit report soon to be released, persons have expressed concern that previous overpayments to contractors are not being speedily addressed. According to the Finance Ministry, however, it is being addressed and persons will be held accountable.
In an interview with Guyana Times, Finance Secretary, Dr Hector Butts acknowledged the importance of recovering overpayments and holding those responsible accountable. But he noted that this was a process.

“Definitely, we must go after overpayments and that sort of thing. They take time to some extent. For example, if one is for overpayment on a contract then they must go after those contractors.
“Sometimes one side might say it’s an overpayment and another side might say it’s not, let’s check it back. So it’s an issue that has to be between the internal audit department and the state audit department. Because the state auditor will identify overpayments and there needs to be some reconciliation before.”
Notwithstanding the difficulty in following this process, Dr Butts noted that there must be efforts to recover overpayments of fees to contractors. He was also asked about preventative mechanisms being pursued by the Government.
“Prevention of future overpayment can only be done based on parties that are responsible adhering to compliance. One cannot guarantee that there wouldn’t be overpayment, because it becomes a function of the nature of who are involved.
“But we will hold persons responsible and make sure that the public funds are not lost through any overpayments. We investigate it whatever occurs and from that decide how we move forward.”

REOs
When asked about the Regional Executive Officers (REOs), who may have been flagged by Auditor General Deodat Sharma for various infractions, Butts explained that punishment must be combined with human resource development of the REOs.
“Holding REOs and other officials accountable (is important), we need compliance. But at the same time, we need to look towards development of our resources, because they are all human resources. To some extent they will be making mistakes that are oversights. And we need to recognise that.
“Hence, the Ministry of Communities has been having more discussions with REOs, to make them understand better in terms of direction and expectations of themselves. And from my perspective yes, I’m going to look at some issues and tie some things in. We’ll have to address it if you violate any of those actions. There’ll have to be considerations in terms of making sure there is a consequence for those actions.”

Infractions
There have been quite a few cases where officers were red flagged and were then unable to account for their conduct. A few months ago, lack of accountability for drugs warranted to Region Five (Mahaica-Berbice) caused Public Accounts Committee (PAC) Chairman Irfaan Ali to have Regional Executive Officer (REO) Ovid Morrison and team expelled from a Committee meeting.
In addition, Ali had instructed the Finance Secretary to look into taking appropriate action against the accounting officer, who faced heat from the PAC after Auditor General Sharma complained of being hindered in the execution of his duty by Morrison.
The AG had noted that Morrison had written a letter to him stating that no one from the region could release information to him unless it went through him.
Shortly before that, the inability of Region Nine (Upper Takutu-Upper Essequibo) officials to answer PAC questions regarding issues raised in the AG’s Report also caused them to be asked to leave the chambers.
At that sitting, chaired by Member of Parliament Pauline Sukhai in the absence of Ali, REO Kerwin Warde was questioned on the Region’s procurement of drugs through inter-departmental warrants (IDWs).
Warde could not even provide definitive details on the reconciliation from the Materials Management Unit (MMU) of the Public Health Ministry, as recommended by AG Sharma in his 2016 report.
It was also found in this report that overpayments on 98 contracts administered by various Ministries, departments and Regions in 2016 amounted to $82.6 million. In April of last year, Communities Minister Ronald Bulkan noted that overpayments should not be happening. It remains to be seen whether the Regions listened to him.
It is expected that the AG’s report covering the fiscal year ending December 31, 2017, will be handed over to the Speaker of the National Assembly on Friday, at the Public Building.