PAC Hearing: $133M in undocumented cheques found in Reg 1 RDC safe 2 months before 2020 election

– probe continues into 6 unevaluated contractors who received $79M in contracts

The Public Accounts Committee (PAC) on Monday sought an update on the Audit Office’s investigation into the discovery of 333 cheques totaling a whopping $133.9 million in a safe in the Regional Democratic Council (RDC) office in Region One (Barima-Waini) with no supporting documents.
The 333 cheques, missing payment vouchers, and other important documents were found when the Audit Office visited the region in January 2020 – two months before the National and General Elections.

While the Region subsequently did send documents to the audit office, in many cases these documents resulted in even more queries -queries the region did not satisfactorily answer.
“On the 14th October 2020, when the REO was Mr. Bissessar, who was deputy REO for years back, 2019, 2017. He became the REO in 2020. He received a management letter, from the Audit Office, for him to respond to those queries. And he did not respond to the queries?” PAC member Ganesh Mahipaul questioned.
To this, Audit Director Gitanjali Singh noted that while the then Regional Executive Officer (REO) did respond, satisfactory answers and the missing documents were not provided at the time.

And it wasn’t until the next year when they visited the region again, that documentation was found. It was disclosed by the Audit Director that they verified that some of the cheques had been paid over and others returned to the consolidated fund, in this subsequent visit.
“In 2021, the Audit Office went into the region. And when they went into the region, they found all the documentation to satisfy these 333 cheques… I’d have to say we found the cheques were paid. They weren’t in the safe anymore,” she explained.
“In terms of all the documentation satisfying the requirements, I wouldn’t be able to say at this time. To pay a cheque, you would have had to have the voucher for it to be signed. We would not have gone back and done a 100 per cent verification, on a prior year, if we’re doing the current year.”

The 333 undocumented cheques are a part of the 1,194 cheques totaling $791.109 million that had been found in the safe… cheques that, according to the Auditor General, should have been refunded to the Consolidated Fund.

Contractors
Meanwhile, Region One was also put in the spotlight by the committee, over the Auditor General’s 2019 findings that six contractors who were not evaluated, received $79 million worth of contracts from the region.
It was found at the time that the six contractors, who had not been evaluated by the Regional Tender Board, got 15 contracts. PAC member Dr. Vishwa Mahadeo quizzed Regional Executive Officer (REO) Sewchand, on this occurrence.
But when he could not provide answers on how and why these contracts were awarded, as well as whether the equipment procured was still functioning, an undertaken was given by the REO to provide an update to the committee in a couple of weeks.

The REO was also asked about breaches that occurred when ten contracts totaling $60.5 million were issued without being publicly advertised. A similar instance occurred in 2018, this time with four contracts totaling $17.6 Million.
According to the REO, however, he had no answers since efforts to get such from his predecessor had failed. As such, PAC member and Public Works Minister Juan Edghill sought clarity from the Audit Director Gitanjali Singh.
“For the three-quote method, we were querying in paragraph 1208(a), supply of 2 37KVA generators, $8.2 Million; purchase of priority medical equipment, $7.9 million; purchase of health equipment, $7.8 million; purchase of priority medical equipment, $7.4 million.”
“Supply of electrical hardware items, $5.9 million, supply of one Caterpillar generator set, $5.9 million; supply of electrical hardware items, $5 million; supply of (two) outboard engine, $3.7 million (and) purchase of priority medical equipment, $3.4 million,” she detailed. (G-3)