Auditor General recommends dismissal of NDIA Engineer

Jan 07, 2013 News

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– but officer still on the job

Despite recommendations for his dismissal or resignation, a controversial senior section engineer of the national drainage and irrigation board remains on the job.
The recommendations were made by the Auditor General’s office, which confirmed an earlier finding that the Engineer Aneel Chowbay was in a position of conflict of interests.
The probe by the Auditor General was undertaken after an initial report by the NDIA’s internal auditor on the operations of the NDIA had recommended the immediate dismissal of the entity’s boss Lionel Wordsworth and the Senior Section Engineer, after several instances of fraud and conflict of interest were unearthed.

That report on fuel consumption and equipment operations and maintenance, was conducted between May and September and was completed and submitted to the Chairman of the NDIA Board of Directors on September 26 and carbon copied to President Donald Ramotar.
The report concluded that fraudulent acts were committed by the CEO-Lionel Wordsworth and Senior Section Engineer (SSE) Mr. Aneel Chowbay…, breaching the Procurement Act 2003.
It speaks of conflict of interest and sole sourcing of services such as the supply of fuel and the awarding of contracts to relations by senior NDIA operatives, breaching national procurement procedures.
It subsequently led to the entity’s auditor being controversially sent on leave from breaching protocol, as a result of him sending his report to the President, and the subsequent leaking of it to the media.
Kaieteur news understands that the auditor general in its subsequent audit found that the section engineer was in a conflict of interest position and in a preliminary report, recommended that he either be dismissed or tender his resignation.
According to a source at the auditor general’s office that recommendation was made since early December last year.
When contacted employees of the NDIA confirmed that the engineer was still on the job.
The NDIA’S budget runs into billions of dollars, given the importance of drainage and irrigation for Guyana’s vast agriculture sector, the NDIA’s budget runs into billions of dollars.
The initial audit came in the wake of questions of value for money and accountability being raised.
The report had pointed to a major breakdown of internal control over the fuel system which lends itself for possible fraudulent activity since it cannot be fully tested and relied that fuel ordered was received in part at the pump station and used for its required purposes.
According to the report, fuel consumption and pump efficiency was inadequately monitored by the NDIA Mechanical Engineer Department which should have assisted in implementing steps to minimise risk exposures and losses.
It was the opinion of the auditors that the NDIA’s contract for fuel transportation and payments recommended, was poorly managed and verified by the Senior Section Engineer and ultimately the Mechanical Department.
Additionally, the report was scathing in its assessment that SSE Chowbay did not declare a conflict of interest and continues to prepare contract documents, certify payments for his uncle, one Kaydar Persaud, who was carrying out work for the entity.
This newspaper understands that Persaud is the contractor for NDIA works totaling $19M.
The engineer’s brother Keshav Chowbay is also an engineer working with his uncle, the contractor.
The audit found that all the Bill of Quantities were prepared by and requests for payment verified and certified by the NDIA Senior Engineer for all contracts awarded to his uncle.
“This situation presents a conflict of interest and a great risk of the SSE’s primary interest being unduly influenced by a secondary interest,” the report stated.
It however deferred the evaluation of the Bill of Quantities/Engineers Estimates for possible corruption and financial gain to the Contract Audit for a more detailed test.
The report recommended that Chowbay should cease all functions relating to excavators including preparation of scope of works, bill of quantities and verification of payments. It further advised that he should be written to for not declaring a conflict of interest.
The auditors in their recommendation, submitted that both Wordsworth and Chowbay be fired.
“the CEO and SSE’s services should be immediately terminated for committing the fraudulent acts and a full investigation of all awarded contracts for 2011 and 2012 be done…The procurement functions performed by the CEO should be relinquished immediately to the Procurement Department for strict adherence with professional procurement guidelines,” the report recommended.

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