OP to seek write-off on $19.5M owed since 2015 for CCTV cameras purchased by APNU/AFC

– legal advice was received that US courts only way to recoup money

A legal opinion has been received that the Office of the President (OP) would have to pursue the $19.1 million owed by an American company since 2015 for CCTV cameras that were bought but never delivered, in the US courts. In view of this, a write-off of the amount will be sought.

This revelation was made when the Office of the President (OP) appeared before the Public Accounts Committee (PAC) on Monday. Responding to questions on the outstanding money for the CCTV cameras procured since 2015, Permanent Secretary Abena Moore said she recently received legal advice on the matter.
She said that they were advised that in view of the time elapsed, they would have to approach the US courts for justice, if they were still desirous of pursuing the matter. According to Moore, they will be approaching the Finance Secretary (FS) to have the sum written off.
“The position remains the same, however, I recently received a legal opinion, which I’m now guided by, and I’m soon to approach the Finance Secretary so that this matter could finally be written off. Because from the legal opinion it was said that time has elapsed, it is now five-plus years and if you’re going to bring a matter before the court it is supposed to be three years.”
“That’s with the Guyana situation. If we still want to pursue, we’d have to hire an attorney in the US, so that those laws over there can apply to the particular situation. So that’s just an update on the matter,” Moore explained.
Meanwhile, PAC Chairman Jermaine Figueira reminded of the circular sent out, which authorises accounting officers for budget agencies to request a write-off for amounts owed for over three years.

The non-delivery of the cameras has been a recurring issue on successive Auditor General reports. It is understood that the company which was contracted to supply the cameras, Moonblink Communication Incorporated, has since filed for bankruptcy.
These very CCTV cameras, which were purchased in December 2015 with monies taken from the Contingency Fund for an “emergency”, were subject to questions in the PAC back in 2017. Under questioning, Moore had provided the names of the company’s principals.
When the matter came up again last year, both the PAC Chairman and fellow PAC Members Gail Teixeira and Ganesh Mahipaul, had urged the PS to ensure that all steps are exhausted before a write-off of the money is even considered.
There are strict rules governing the Contingency Fund, which is only supposed to be used for emergencies. But in the 2015 Auditor General report, it was found that withdrawals totalling over $900 million were made from the Fund, most for non-emergency purposes.
According to Section 220 (1) of the Constitution of Guyana, “Parliament may make provision for the establishment of a Contingencies Fund and for authorising the Minister responsible for finance to make advances from that Fund if he is satisfied that there is an urgent need for expenditure for which no other provision exists”.
Section 220 (2) goes on to say that “Where any advance is made from the Contingencies Fund, a supplementary estimate shall, as soon as practicable, be laid before the National Assembly by Prime Minister or any other Minister designated by the President for the purpose of authorising the replacement of the amount so advanced”.
In addition, Section 41 (3) of the Fiscal Management and Accountability (FMA) Act states, “The Minister, when satisfied that an urgent, unavoidable and unforeseen need for expenditure has arisen – (a) for which no monies have been appropriated or for which the sum appropriated is insufficient; (b) for which monies 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 by the issuance of a drawing right”.