Opposition gouges $1.7B from Budget; NCN, GINA allocated $1 each

Apr 26, 2012 News

---

 

– as OP talks breakdown

 

By Gary Eleazar

Following a breakdown of talks at the Office of the President between Opposition Parties and Head of State Donald Ramotar on the passage of the 2012 Budgetary Estimates the opposition made good on its threat to make sweeping cuts to allocations.
“They have chosen their path let them take the burden that goes with it,” were the words of A Partnership for National Unity’s point man on finances and former Minister of Finance, Carl Greenidge even as shrugged off appeals by the Prime Minister Samuel Hinds to reconsider a proposal for cuts specific to the ICT program at the Office of the President.
This was in relation to a $170M allocation from the local coffers which the Finance Minister sought to explain was counterpart funding so as to be able to receive in excess of $6B from China for the ICT programme being undertaken by the Office of the President.
Bishop Juan Edghill, the junior Finance Minister, who was presenting clarifications for the allocations for Office of the President had underscored the importance of the programme. He explained that this had to do with the e-governance, the One Laptop per Family Programme (OLPF) and the fiber-optic cable to facilitate the LTE network.
The Government Ministers sought to explain that by disallowing the $170M from the local coffers the opposition would negate the foreign inflows in the form of grants and concessionary loans.
The first order of cuts for the day was propelled by a Greenidge motion which sought to cut some $211M out the OP allocation set aside for subsidies.
Greenidge told the House that the $211M identified represents the subsidy for the National Communications Network and the Government Information Agency.
This cut attracted a significant amount of debate in the House as to the merits of the “National Asset.”
During a query of the operations of NCN it was learnt that the State owned television station earns revenue to the tune of some $508M and that the subsidy from OP was used to supplement employment costs.
Greenidge told the House that the purpose behind his proposed cuts was as a result of APNU’s dissatisfaction with reporting arrangement.
He said that APNU is seeking to deny the fund because the two mediums have national responsibility to serve country as a whole.
Greenidge against the backdrop of passionate pleas by Bishop Edghill and Prime Minister Hinds successfully piloted the cut which removed the entire subsidy for GINA leaving it with a dollar.
Some $80M was removed from NCN also leaving that entity with a $1 subsidy.
Edghill sought to explain that by denying the subvention then the people of Guyana will be denied access to information as has been championed by the Opposition. However, this did little to sway the opposition.
As it relates to Capital Expenditure for both NCN and GINA, Greenidge again moved to make cuts and relieved both entities of the subventions for any new projects to be undertaken.
This publication understands that as a result of the cut NCN, will firstly pull the Learning Channel and each programme such as Law Enforcement and You. Any other subsidized programme will have to start paying more for airtime.
It was also pointed out  that as it relates to the 30-odd staff members employed at GINA their future employment with the entity is uncertain given that the company now only has $1 to undertake its activities for the year.
Next on the chopping block for Office of the President was the local equity being invested by Guyana to ensure the flow of in-excess of $6B for Guyana’s ICT programme.
This was vehemently opposed by the government and Finance Minister Dr Ashni Singh sought to explain that this counterpart funding to receive the remaining resources was necessary.
He sought to impress on the opposition that with the removal of this money then some 63,000 Guyanese would be denied a laptop from that initiative. The 27,000 laptops that have already been distributed will go to waste as there will be no support system for this venture.
To this end the Prime Minister expressed his express regret and questioned the logic behind the cut
“Here it is we are receiving significant grant aid.” He reminded that in order for this inflow from China to be realized then Guyana would have to invest the $170M.
“I can’t imagine the kind of person and spirit that would seek to take the money away and run the risk of just having the laptops that are already there to just have them park up.”
Dr Singh appealed to the opposition to not view the components of the project in isolation saying that it is an integrated project.
“It would be irresponsible to disaggregate the project and disaggregate from each other.”
The money was eventually cut from allocations and the AFC Chairman in his motion also sought to cut even more funds from Office of the President.
He successfully piloted a motion removing some $280M from OP for contract employees among other programmes.
The final cut for the night saw the $6B transfer to the Guyana Power and Light (GPL) being reduced by $1B despite another round of passionate appeals on the part of the Prime Minister.
Greenidge withdrew his motion in the House to slash the entire bailout but Ramjattan went ahead with his $1B cut which found support with APNU.
The Parliamentarian said that the AFC will allow the $5B transfer to GPL on the condition that there be a commitment on the part of the government to ensure adequate systems be put in place to stem system losses.
He said that should the measures be implemented then AFC will have no problem supporting a $1B Supplementary Allocation to the power company.
The House subsequently approved a motion to defer a vote on the budget last evening.
The House will reconvene today at which point in time the Ministry of Finance will hold the spotlight as APNU’s $18B slash to the LCDS projects looms.

---

---