$4.5M fraud at Eccles NDC…Auditor General also probing possible arson attempt

Feb 10, 2013 News

State auditors probing a possible fraud of several millions of dollars at a Neighbourhood Democratic Council (NDC) on East Bank Demerara are expected to complete their work in as little as three weeks.

Disappeared: Overseer, Raul Kissoon

According to Auditor General, Deodat Sharma, a report of its probe will then be handed over to the Ministry of Local Government.
The Office of the Auditor General and the police were called in last month after Raul Kissoon, the Overseer of the Eccles/Ramsburg NDC, disappeared, leaving his office locked.
The NDC had wanted money to pay urgent bills. Kissoon’s mobile phone was going to voicemail.
After breaking into his Peter’s Hall office, auditors and the police found undeposited cheques and bank slips that were written up but were not carrying the bank stamps.
A decision was made to break open a safe there.
Yesterday, the Auditor General declined to go into details what was found…or rather, what may have been missing.
What is clear is that the Ministry of Local Government asked the police and the Auditor General to investigate.
Kaieteur News understands that as much as $4.5M, representing rates and taxes collected by the NDC during the first week of the year may be missing.
This newspaper has been told that the probe could go back as far as six months ago when Kissoon was appointed.
The NDC Chairman, S. Khan, speaking to reporters who visited his Peter’s Hall office last week, claimed that the Overseer was sent on leave.
However, Ministry’s sources said that Kissoon had not been seen at the office since January 14.
The $4.5M rates and taxes were collections made over several days, this newspaper was told.

Chairman of Eccles/Ramsburg NDC, S. Khan

Yesterday, the Auditor General said that to his knowledge, NDCs…there are 65 of them across the country…should deposit their cash every day.
Questions are also being asked why the Region Four administration did not make its checks on the NDC as is the requirement, to ensure that procedures are being followed.
Meanwhile, the Auditor General who has sweeping powers, including powers to conduct surprise audits at state entities, said he will also be looking into reports whether there was an attempt to set the NDC office on fire.
Shortly before the statutory meeting in January—meetings held on the first Monday of every month– workers of the nearby M&M Snackette noticed smoke pouring from the building and raised an alarm.
Kissoon who had just reportedly left the office was one who helped to douse the flames.
The NDC Chairman said that it was a “small electrical fire”.
It was this same NDC which a few years ago came under criticisms for attempting to sell a playfield in Republic Park.
Eccles/Ramsburg NDC is charged with maintaining the infrastructure between Providence and Eccles. It is also responsible for collecting rates and taxes and garbage.
The Local Government Ministry has been on a campaign to clean up NDCs and towns across the country as complaints continue to surface about corruption and neglect.
Several NDCs, at least 29 of the 65, have been replaced by Interim Management Committees (IMCs). Local government elections have not been held since 1994.