Latest update November 27th, 2024 12:07 AM
Jan 27, 2009 News
The Government has taken a decision to freeze gratuity payments for workers on foreign-funded projects over under-performance.
In a January 13, 2009 memorandum, workers were notified that all gratuity payments have been suspended with immediate effect.
Workers on foreign-funded projects, who are paid salaries significantly higher than regular Government workers, are paid a gratuity, or bonus, of 22.5 percent on their salaries every six months.
Minister within the Ministry of Finance, Jennifer Webster, said that the policy of freezing gratuity payments is subject to review as performance improves.
She said that the action was not aimed at any particular group of workers. She made particular reference to projects funded by the Inter-American Development Bank (IDB), but Kaieteur News understands that the freeze has been extended to projects of the World Bank and the Global Fund.
Minister Webster said that Project Execution Units are responsible for the “timely execution and implementation of projects,” and it is only fair that sanctions be imposed where under-performance is found.
She said that the projects under the IDB portfolio have been found wanting. When annual operating plans were prepared, Webster said, it was found that “a lot of them fell short.”
Of recent concern has been the Berbice Bridge approach roads, the road to Moleson Creek, and projects under the Basic Education Access Project, such as the Mahaicony Secondary School project.
According to the IDB website, in the last five years, the Bank has funded projects amounting to US$164M, covering reform and modernisation of the state; private sector development; transportation; urban development and housing; agriculture and rural development; and other projects.
Last December, four new projects were approved for funding by the IDB.
These include US$27M for a second low-income settlement programme that will focus on investment in housing and squatter upgrading and institutional development and policy reform; US$5M for a financial sector reform programme; $US725,000 for implementing of an integrated national nutrition programme; and a further US$323,000 as support for financial sector reform.
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