Special audit likely for $1B Ocean View rebuilding – Auditor General

The arrangement between the caretaker Government of Guyana and the flood-prone Ocean View Hotel, which will see $1 billion being spent to rebuild the premise into a COVID-19 hospital, could come under a special audit.

This is according to Auditor General Deodat Sharma, in an interview with this publication. When asked, Sharma said that from the available reports, the arrangement may not have gone through the required process.
The Auditor General noted that in light of the coronavirus and the exceptional political circumstances, separate accounts for expenditures incurred are expected to be kept.
“And you’d have to go through the Procurement Board procedures [for agreement with Ocean View]. This doesn’t look like it went through the [expected] procedures,” Sharma explained.
He recalled previous instances where the Public Health Ministry’s use of the Ocean View Hotel to store drugs was audited and irregularities were found.
“So all of this will be under audit after things have calmed down. But they’re being looked at right now, for a special audit when we get back to work,” Sharma said.
In the Auditor General’s 2017 report, he had found that drugs were being stored on the Ministry’s behalf in seven rooms at the hotel, which was termite infested. Among the issues the Auditor General had raised was the lack of a formal written agreement.
Since the coronavirus (COVID-19) outbreak, Government has been retrofitting the flood-prone Ocean View International Hotel, Liliendaal, Greater Georgetown, into a COVID holding facility.

The Pan American Health Organisation/World Health Organisation (PAHO/WHO) had projected that Guyana could see 1400 cases, with about 81 per cent of those cases being moderate, 14 per cent severe and five per cent critical. In light of this, additional space would be required.
Caretaker Finance Minister Winston Jordan had subsequently revealed that over $1 billion will be spent on this project. Operational costs are not included in the $1 billion price tag.
There have been questions, however, as to who really owns the building and what will be the arrangement post-COVID. People’s Progressive Party (PPP) Presidential Candidate, Dr Irfaan Ali has been very critical of the secrecy surrounding the project. Former shadow Health Minister Dr Frank Anthony had also questioned what the arrangements are.
“We would like to see the contract, what are the arrangements, what obligations they would continue to have going forward. How long will this contract be in place? And if in a year’s time this thing is over, what happens? Is the Government going to be reimbursed for all this investment they made into the building?” Anthony had asked.
Back in 2008, the ownership of the Ocean View Hotel had passed to local businessman Jacob Rambarran. In the run-up to the 2015 elections, Rambarran had endorsed the A Partnership for National Unity/Alliance for Change (APNU/AFC) coalition. One of the contractors on the renovation is a known People’s National Congress Reform (PNCR) member.