– Region did not return unclaimed cheques to Consolidated Fund
A heated exchange ensued at the Public Accounts Committee (PAC), with the Regional Executive Officer (REO) for Region Three being forced to defend the Region’s murky procurement practices.
The Auditor General’s 2016 report had flagged instances where contracts were not being awarded to the lowest bidder, a fact that the PAC pointed out resulted in missed opportunities to save money.
REO Denis Jaikarran
In addition, the fact that the Region held on to some 19 cheques without returning them to the Consolidated Fund was put under the microscope by the PAC. PAC member Juan Edghill questioned REO Denis Jaikarran on this.
“Could the REO indicate to us why these 19 cheques totalling $8.8 million were still on hand as of September 2017? And could he indicate to us when were they refunded, if they were?” he asked.
Jaikarran’s protestations that the cheques were eventually refunded did not sway the Committee, with Chairman Irfaan Ali questioning whether he knew the rules. In response, Jaikarran claimed that contractors were “not coming forward to uplift them”.
“Yes, the cheques were on hand,” Jaikarran admitted. “But all would have been refunded to the Consolidated Fund … I’m advised that those cheques were kept on hand despite the fact that they should not have been there, because persons were not coming forward to uplift them.”
According to Section 43 of the Fiscal Management and Accountability Act 2003, at the end of each fiscal year, any unexpended balance of public monies issued out of the Consolidated Fund shall be returned and surrendered to the Consolidated Fund.
Article 216 of the Constitution of Guyana also states, “All revenues or other (sums of) money raised or received by Guyana (not being revenues or other sums of money payable by or under an Act of Parliament into some other fund established for any specific purpose; or that may, by or under such an Act, be retained by the authority that received them for the purpose of defraying the expenses of that authority) shall be paid into … (the) Consolidated Fund.”
However, the Auditor General’s Report had stated that an inspection of the Sub-Treasury’s safe revealed that there were 19 cheques totalling $8.887 million which were still on hand at the Sub-Treasury Department in respect of 2016.
The Audit Office had recommended that the Regional Administration institute measures to ensure full repayment to the Consolidated Fund of all amounts remaining unpaid at the end of each financial year in compliance with the FMA Act.
That very report had flagged the fact that the Consolidated Fund of Guyana is in the throes of a heavy overdraft showing that at the ending of 2016. The Fund reflected an overdraft of $67.5 billion and the cash book, $86 billion.
