APNU, AFC part ways on budget cut for Housing Ministry’s security

Apr 20, 2012 News

---

 

 

Pull Quote: “Recent developments and backroom deals now leave more questions than answers …We are beginning to question what is taking place behind the closed doors at the Office of the President.”-  AFC

 

By Gary Eleazar

 

Following the brouhaha that erupted as a result of the submission of a motion by Alliance for

Change (AFC) Chairman Khemraj Ramjattan, threatening budget cuts of in excess of US$15M ($3B), the first opportunity to pursue the effect of the motion came as the House resolved itself into the Committee of Supply.
This was on Wednesday, during the consideration of the Current Expenditure for the Ministry of Housing. Ramjattan had sought clarification on the security allocations for the Ministry, which was increased from $7.3M to $18.8M.
Minister of Housing and Water, Irfaan Ali, proceeded to inform the House that the Ministry had approached the Special Constabulary Department with a view to having them expand the security services to include some additional buildings.
Ali said that the department informed the Ministry that as a result of limited manpower, such a request could not be accommodated. He pointed out that as a result, the Ministry had to resort to private security firms, and proceeded to state that through a public tendering process, RK’s Security Service was awarded the contract.
The Housing Minister explained that the contract price of $18.8M emanated from that process.
This explanation however, did not find favour with Ramjattan, who promptly informed the House that he would like to have the $18.8M allocation slashed by $9.8M. He called for a division of the votes to be reflected, at which point in time the main opposition party, A Partnership for National Unity (APNU), abstained from voting.
As a result, the call to slash the amount was defeated 32 to 7. APNU abstained from the vote.
Following the refusal of APNU to support the cut, Ramjattan declined to put forward any other amendments seeking to slash allocations. He expressed disappointment with APNU’s decision to withhold its support for the $9.8M cut.
Ramjattan subsequently indicated that his party in no way intends to cease its path of what he called “judicious cuts” to the budget and to have the sums re-allocated.

“It was the AFC’s position during the budget debate, that judicious cuts be made to the allocations for various areas of the government’s bureaucracy…This was with the intention of finding the money to provide a decent increase to Old Age Pension and Social Assistance.”
He reminded that his party, which boasts seven seats in the House, had tabled a Motion aimed at using the ‘scissors’ on questionable projects and bureaucratic ‘fat-cats’, especially high-salaried contract employees, to find money for the poor and disadvantaged.
The AFC Chairman stated, yesterday, “Recent developments and backroom deals now leave more questions than answers and like the members of the public and a few members of the smaller parties within APNU, we are beginning to question what is taking place behind the closed doors at the Office of the President.”
BUDGET CUTS DAY 2
Yesterday, the House again resolved into the Standing Committee of Supply where the expenditure for the Georgetown Public Hospital Corporation (GPHC) Ministries of Health and Education, among others, was considered.
Under the expenditures for the Ministry of Health, Carl Greenidge, the APNUs point man on finance, sought clarification on the more than $600M. He specifically sought an explanation as to why there appeared under the monies expended in 2011, some $29.1M which the House had recently rejected.
He was referring to the fact that when the advance from the Contingency Fund for the site preparation for the Hospital came up for debate it was rejected, hence there was no parliamentary approval.
Greenidge was seeking clarification on whether the minister can lawfully represent these sums as expended, when the Parliament had never approved such expenditures.
Finance Minister Dr. Ashni Singh chose to defend the allocation and offer an explanation on the matter.
Dr Singh asserted that the fact that the money was expended is a historical fact and he contends also that the authorization for such expenditure was lawful.
The Finance Minister drew reference to the fact that he was the sole authority as provided for in the Constitution of Guyana and re-enforced with the Fiscal Management and Accountability Act and the Parliamentary Standing Orders.
Dr Singh explained also that what is now required, is an ‘ex poste’ Parliamentary endorsement, for which he said, he will move to the House shortly in accordance with the ruling of the Speaker when he disallowed the allocations earlier this year.
Speaking to the $150M that was allocated for the Hospital in 2011 but never expended, coupled with the fact that the Minister advanced $29.1M to the project from the Contingency Fund, the Finance Minister offered clarification.
Dr Singh told the House that the $150M which was earmarked in 2011 represented inflows from India for the design of the Hospital. This, he said, was never done, and the site preparation is being funded from the local coffers, hence the $29.1M advanced from the Contingency Fund.
Another allocation for which the Minister of Health provided details was a $10M upgrade to the New Amsterdam Psychiatric Hospital.
This, the Minister of Health, Dr. Bheri Ramsaran said, focused more on the ambience of the Hospital as well as landscaping, filling of drains, and generally improving the irrigation for the facility which he explained is flood-prone.
“This is basically for the upgrading of the compound,” said Dr Ramsaran.
First-time Parliamentarian Christopher Jones, formerly the head of the PNCR’s youth arm sought clarification on an $11M allocation meant for the purchase of vehicles.
Dr. Ramsaran explained that a portion of the money will be expended on the purchase of a “Saloon Car’ for the Chief Executive Officer of the Georgetown Public Hospital.
The Health Minister told the House that the car which the CEO has been provided is old and incurs a heavy maintenance bill and as such has to be replaced. He said that the remainder of the money will be used to purchase a minibus to assist with the Ministry’s transportation requirements, particularly as it relates to medical staff.

---

---