…as revenue from public projects stashed in region’s revolving fund
PAC member Ganesh Mahipaul
During Monday’s sitting of the Public Accounts Committee (PAC), the committee probed the Region Seven Administration’s retention of money it raised from special projects, in a special account rather than the money being turned over to the Consolidated Fund.
The committee interrogated Region Seven (Cuyuni-Mazaruni) Regional Executive Officer Kerwin Ward and team, on the findings in the 2019 Auditor General (AG) Report. This included findings that pertained to its operation of a special fund.
For instance, the AG had found that the region operated a special project account for money it made from public assets, with almost $10 million being received that year. PAC member Ganesh Mahipaul questioned where the money was kept and why it was not paid over to the Consolidated Fund, where Government revenues generally go.
“All the revenues gained, what happens to that? Is it with the region and stays with the region? Or was it supposed to be deposited in the Consolidated Fund as revenue? There are revenues in there the region raised. The region made money out of the guest houses, the Amerindian Hostel, rental of land and perhaps years coming forward, they made money out of the pavilion.”
Region Seven REO Kerwin Ward
“All of these economic ventures that allow the region to gain a profit, where is that money? Is it in an account managed by the REO or region or was the sum supposed to have been deposited into the Consolidated Fund?” Mahipaul questioned.
Both AG Deodat Sharma and Accountant General Jennifer Chapman clarified that the fund in question was intended as a revolving fund and is audited by the AG. As a matter of fact, Sharma said that a circular may have been sent out on the fund.
“They are not deposited into the Consolidated Fund. I think there was a circular, how to treat the economic venture. And they could retain it (after December 31),” the Auditor General explained to the PAC.
Whether this is catered for in the law was another matter, however, as Mahipaul questioned how a circular providing guidance on the use of the fund, overrides the law which states that all revenue must go into the Consolidated Fund.
“Our job here is to stick to what the law facilitates. And we can’t be guided by information to say a circular tells us X and we’re doing that X, when the law is Y and Y provides for something else. How can we have a circular overriding the law?”
It was then that the Accountant General explained that there are funds which exist outside the parameters of the Consolidated Fund, though she admitted that she would have to verify if the Region Seven fund is one of those.
“Just to clarify, not all revenues that are garnered are paid into the Consolidated Fund. There are some subvention agencies which are authorised to retain their revenue and spend it. But I’ll have to do some research regarding the economic fund, to guide the PAC,” Chapman said.
Mahipaul meanwhile noted that if the need arises, the PAC could make a recommendation to the National Assembly to make amendments that would address any legal conflict. PAC member and Minister of Parliamentary Affairs and Governance Gail Teixeira meanwhile requested that the circular authorising the Region Seven fund to operate as it does, be made available to the committee.
The Fiscal Management and Accountability Act (FMA) states that “all public moneys raised or received by the Government shall be credited fully and promptly to the Consolidated Fund, except – (a) moneys credited to an Extra-budgetary Fund as stipulated in the enabling legislation establishing that fund; (b) moneys credited to a Deposit Fund; and (c) as stipulated in the Constitution.” (G3)
