Police spent $42.5M to store bodies, but no death records found – AG report

The Audit Office of Guyana has flagged the payment of more than $42 million by the Guyana Police Force to a funeral home for storage of bodies after no records were found of any death.

In the Auditor General’s Report for the 2019 fiscal year, it was highlighted that the Police Force spent $155.610 million in expenses for the handling and transporting of dead persons. These payments were made to funeral homes and the outer-town Policing Divisions.
The report pointed out that of the $155.6 million, some $42.565 million (including $851,300 withholding tax to Guyana Revenue Authority) in payments were made to Memorial Gardens Funeral Home and Crematorium, located in Le Repentir, Georgetown, on four contracts for services rendered.
These payments were made in July 2018. However, the Auditor General report disclosed that “no approval was seen to pay unpaid accounts from current funds. A request for Supplementary Provision which was approved for $48.398 million was attached to the Payment Voucher. However, the description for purpose and justification of the Supplementary Provision give no indication that these payments were for prior years and were unpaid. Further… the description on the contracts provided no information on the services rendered by the funeral home.”
Further, the Auditor General outlined that an examination of the Payment Vouchers and supporting documentation revealed no evidence that Tender Board Procedures were followed and no approval was seen from any Tender Board for these awards. Additionally, it was noted too that a petty contract was used for the preparation of these contracts.
“There was no request for payment from the funeral home for the outstanding claims and an inspection of the four invoices from the funeral home revealed insufficient details in relation to the storage and handling of the deceased. Two of the invoices for the amounts of $16.480 million and $18.755 million; respectively, were not signed by the authorising officer of the funeral home,” the report also revealed.
According to the Audit Office, checks carried out on the invoices revealed a column “removal date” with dates ranging from 2015 to 2017.
“It could not be determined what this date represents and how long the remains/deceased were stored at the funeral home. Further, the invoices had cost associated for transportation, two handling cost, cold storage, post-mortem and total cost. Under cold storage, a sum was stated; however, it could not be determined how this sum was arrived at since no rate per days and the number of days were stated on the invoices,” detailed the AG report.
According to the invoices, the report noted, the police stations that requested assistance for storage and other related death services were Bartica, Region Seven (Cuyuni-Mazaruni); Mahdia, Region Eight (Potaro-Siparuni); Cove and John, Region Four (Demerara-Mahaica); Aranka and Eteringbang – both in Region Seven.
“However, no extracts or reports were seen from the Death Occurrence Books from these stations to support the information recorded on the invoices. As such, the completeness, accuracy and validity of the amounts of $42.565 million expended for services rendered for storage and handling of the deceased could not be determined,” the AG report underscored.
In response to the findings by the Auditor General, the Head of the Budget Agency explained that a request will be made to have the Divisional Commanders send copies of the extract from the Death Occurrence Book.
Nevertheless, the Audit Office recommended that the Guyana Police Force comply with the Procurement Act and Section 10 (3) of the Fiscal Management and Accountability (FMA) Act, whereby the Head of the Budget Agency shall comply with all relevant provisions of this Act, the regulations, finance circulars and any other instructions in relation to the proper management of the financial resources of the State.