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Court blocks Govt. from using IDB funds
The High Court in a ruling this week blocked the Government from spending a US$32.16M loan recently
APNU Shadow Finance Minister, Carl Greenidge
disbursed by the Inter-American Development Bank (IDB).
Chief Justice (ag), Ian Chang, made the temporary ruling on Wednesday in response to a legal challenge brought by A Partnership for National Unity (APNU)’s Shadow Minister of Finance, Carl Greenidge, against Finance Minister, Dr Ashni Singh.
Greenidge brought the action to prevent the government from spending the loan, arguing that without a Parliament in place, Government cannot legally spend the monies with the approval of the National Assembly.
On basis of the pleadings of the applicant (Greenidge), the court ruled that no disbursement can be made from the loans until the next court date, April 8.
The Chief Justice also granted leave for the Finance Minister, through his lawyers, to file a response.
Greenidge filed the court action asking that the proceeds under the loan agreements signed between Dr. Singh and the IDB be paid into the Consolidated Fund.
Greenidge has since asked his lawyers to apply for the order to remain in place until a final determination of the matter.
Last month, Government announced that Minister of Finance, Dr. Ashni Singh, signed loan agreements with President of the IDB, Luis Alberto Moreno.
The agreements comprise two loans targeting police and prison initiatives as well as the environmental management sectors. The amount totaled US$32.16M – US$15M for the Citizen Security Strengthening
Finance Minister,
Dr Ashni Singh
Project, and US$17.16M in support of policy reforms in the sector.
With elections set for May 11, the Opposition has been warning that it will not honour any new transactions, and has also expressed concerns over the unfair use of state resources – including money – to do campaign work.
Greenidge based his argument on the fact that the monies could be spent without adequate due process from the National Assembly, given that the Parliament has been dissolved.
According to the writ which was filed last month, Greenidge asked that there be no withdrawal of the proceeds of the said Loan Agreements, except by an Appropriation Act as directed by Article 217 of the Constitution, which deals specifically with management of finances in the Consolidated Fund.
Greenidge specifically argues that the defendant or other Ministers designated by the President or any other member of the Executive of Guyana cannot lawfully spend or authorize the spending of monies received under the said loan agreements with IDB unless there is explicit authorization of the National Assembly.
Attorney General (AG) Anil Nandlall is also named as a respondent in the case.
On Wednesday, a junior attorney of the AG Chambers gave an understanding that the loan would be deposited into the Consolidated Fund, and disbursed in accordance with Constitutional provision.
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