AFC proposed Budget cuts...Ramsammy flabbergasted, disgusted, disappointed over $814M proposed cut for Agri. Ministry

AFC proposed Budget cuts…Ramsammy flabbergasted, disgusted, disappointed over $814M proposed cut for Agri. Ministry

Apr 14, 2013 News

Agriculture Minister, Dr. Leslie Ramsammy, is flabbergasted, disgusted and disappointed that the Alliance For Change (AFC) has signaled its intention to cut some $814M in budgetary allocations for his Ministry.
He is concerned that one of the cuts will affect the installation of 14 drainage pumps.

Agriculture Minister, Dr. Leslie Ramsammy

According to Dr. Ramsammy, on Friday afternoon, by way of a notice from Parliament, he was informed that AFC Member of Parliament and Party leader, Khemraj Ramjattan, will be moving a motion in the National Assembly to cut the 2013 National Budget. This notice is the first of several more to come, he said during a press conference at the Ministry of Agriculture yesterday.
While, the AFC has highlighted other Ministries that will have their allocations slashed in the notice, the Minster’s concern is that the cut to the Budget would affect the Hope Canal project and drainage pumps, key projects of his Ministry that are already being executed.
“I want to address the one component on the capital budget for agriculture totaling $1.3B. It is proposed to cut that by over $814M, reducing that capital item budget to just over $500M. That is almost 60 percent of that capital budget to be cut in accordance with the notice issued by the honourable member,” Dr. Ramsammy said.
Though the notice did not indicate the projects to be cut, he said that the amount proposed to be cut is budgeted to finance two very important capital projects for Guyana. They are the completion of the Hope Canal (Northern Relief Chanel) and the acquisition of 14 pumps utilizing US$4M line of credit from the Government of India through the Exim Bank.
According to Dr. Ramsammy, “It has not escaped me that the combination of the contract to supply 14 pumps and the cost of the letter of credit from the local banks total the exact amount in the notice for cutting the budget.
“When I add the contract sum for the 14 pumps plus the charges of the local bank for the letter of credit and bank charges, it totals the exact amount in the notice that is $814,812,000.”
“From Mr. Ramjattan’s speech in Parliament and in his discussion with me he indicated to me his intention to cut the pumps. And, now the sum he indicated that he wants to cut happens to be the exact amount on the pump contracts.
“I know they are targeting the 14 pumps,” Dr. Ramsammy stated.
According to Dr. Ramsammy, tenders for the project were opened in Guyana and in India and two companied submitted bids in 2011. However, the contract only became operational in March 2012 and was expected to end one year later. It did not. Instead Government granted a one-month extension.
The Minister related his uncertainty as to why the AFC would want to cut this item from the budget since it is important to farming communities along the coastland. The pumps are intended for Lima, Windsor Forest, Canal Polder No.2, Dazzle, Paradise, Enterprise, Pine Ground, Canje, Number 19, Albion, Rose Hall Town, Bengal and Crabwood Creek.
“As a citizen of Guyana I find this repulsive an abominable act to target pumps that are absolutely required not only for the development of Guyana but to promote better standard of living… To target people like this is wicked and unacceptable. I have absolutely no idea why they would target these pumps,” he added.
However, the ‘late’ delivery of the pumps has been a contentious issue. Early October 2012, Ramjattan had said that he was moving to have the National Assembly probe the US$4M contract which was awarded to Surendra Engineering and signed in early 2011.
He was furious that the pumps did not arrive in Guyana in September 2012 as expected. The agreement for the pumps was signed in 2011 between the Ministry of Agriculture, under the then Minister, Robert Persaud, and Surendra Engineering. The pumps were to be initially delivered since December 2011, and an extension was granted to September 2012.
According to Dr. Ramsammy, of the 14 pumps, six pumps were delivered to the Government of Guyana and most of the parts of the remaining eight are already in Guyana. He explained that the pumps have to be built to specifications.
He noted that for the company to deliver the complete pump components they have to be tested in India and Miami. The last components of the pumps which are yet to be shipped from India are to be inspected. Two local engineers will be going to India shortly to inspect the components.
In addition, there are some components already in Miami to be shipped to Guyana with arrival date slated for April 20.
Emphasizing another reason why the cut is unreasonable, Dr. Ramsammy said that the delivery of the pumps is not all that must occur. In the 2013 Budget, Government has catered for the construction of pump stations. These contracts have already been awarded and several of the pump stations are under construction.
“I don’t know how we are going to build pump stations and then cut the funds for the pumps of course some of the money has already been paid in the 2012 budget. So I am utterly flabbergasted disgusted and disappointed that such a critical project is being threatened,” he declared.