Govt. illegally spent US$17M – Opposition

Dec 13, 2013 News

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– Minister Benn says he is prepared to go to jail

By Abena Rockcliffe

The political opposition has accused the Guyana Government of spending as much as US$17M or just about G$3.4B, in violation of the Fiscal Management and Accountability Act and the Constitution of Guyana.
The accusations came yesterday as the National Assembly resolved itself into a Committee of Supply to consider a Financial Paper which represented a ‘Statement of Excess’ where the government expended billions that had been cut from the 2013 Budget.
The Opposition argued that the House did not approve the money for expenditure and as such the Finance Minister did not have the right to go ahead and make the expenditure from the Consolidated Fund.
At least one Government Minister, Robeson Benn, defended the expenditure to the point where he said he would face the consequences and go to jail rather than resign as a government Minister.
Former Minister of Finance and A Partnership for National Unity (APNU) parliamentarian, Carl Greenidge, was first to question financial paper (No1/2013) over excess spending taken before the House for approval.
The monies used and some answers provided as reasons for the expended sums resulted in Greenidge telling the National Assembly, that APNU will take legal action against the Finance Minister for the improprieties over the expenditure.
That document was one of the three financial papers taken before the House by Finance Minister, Dr. Ashni Singh – the other two being financial papers requesting approval for supplementary spending from the Contingencies Fund.
The document on excess spending recorded a total expenditure of $3.4B, but the National Assembly only approved $3.1B.
Dr. Singh was asking the house to approve sums utilized for the provision of subsidies to the Government Information Agency (GINA), the National Communications Network (NCN), subsidies to the Guyana Power and Light Inc. (under the Electrification Programme), monies for the completion of Hinterland/ Coastal airstrips, Equipment for the Civil Aviation Authority, the Cheddi Jagan International Airport (CJIA) Modernization project as well as the Specialty Hospital project.
But the House did not approve spending for GINA, NCN or the Cheddi Jagan International Airport expansion Project (CJIA). Sums utilized for “provision for Specialty Hospital” was only passed because one of the Opposition members—Volda Lawrence—fell ill during the sitting and another—Deborah Backer—was absent from the sitting.
Greenidge told the National Assembly that it is unlawful and contemptuous of the government to use monies that were deliberately denied by the National Assembly for provisions to various agencies and projects.
He reiterated the opposition’s reason not to support the existence of NCN nor GINA.
Those were well ventilated in the media.
The Member of Parliament recalled the protest action taken by GINA staffers and government’s pronouncement that budget cuts led to unemployment. With that being brought to the fore, Greenidge asked the National Assembly, “Why then should monies be approved for staffers if they are in the unemployment line.”
Greenidge also questioned on what basis the government can take such a request to the National Assembly.
Junior Minister of Finance, Juan Edghill, sought to defend the expenditure and said that article 218 (3) of the constitution gives authority for the government to make such a request.
That article, according to Edghill, mandates that if it is realized in any financial year that the amount appropriated is insufficient or expended, a supplementary provision showing the sums required or spent shall be taken before the House.
But APNU’s Jaipaul Sharma explained that Article 218 speaks to supplementary spending and the Constitution only provides for the Minister to spend excess under two circumstances; those being in the case of a late budget and if the Parliament is dissolved “since neither is the situation then the Minister had no right spending.”
Alliance For Change Leader Khemraj Ramjattan, called for the government to have respect for the National Assembly and not spend that which wasn’t approved. His party’s Vice Chairman, Moses Nagamootoo, told the House in no uncertain terms that so long as the government refuses to democratize NCN and GINA, the “glorious scissors” will be rampant.
Eventually the House voted against monies expended on NCN and GINA.
It also rejected sums spent on the CJIA expansion project. However it approved sums spent on the Electrification Programme, the Hinterland/ Coastal Airstrip and Civil Aviation, but not before questioning the Ministry of Public Work’s tender process.
This happened even as the Minister of Public Works informed the House that the monies for the airport project, some $65.4M, had already been spent. He said that the money was spent because Government had already inked a contract and that failure to abide by the provisions of the contract would constitute a flagrant breach.
Benn told the House that some US$20M has already been advanced to the Contractor and that any breach of contract would potentially cost Guyana more that the US$20M advanced. He said that he would willing the face the consequences of making the expenditure, given that it was done in the interest of the nation, and said that he would rather go to jail than resign as a Minister over his actions.
The second Financial Paper considered by the House was for a supplementary provision allocated from the Contingencies Fund to the tune of $1,261,596,480 for the period of the second financial, August to November 5, 2013. The money was utilized by Ministries of Agriculture, Home Affairs, Local Government and Health. That document was approved in its entirety.
Financial Paper No. 3 asked for the National Assembly to support a supplementary provision of $7,737,984,510 for the period ended December 31
That amount was utilized by the Ministries of Agriculture, Public Works, Amerindian Affairs, and Home Affairs.
The Agriculture Ministry asked for $4.5B for support to the Guyana Sugar Corporation (GuySuCo) and $500M for the Guyana Rice Development Board; those sums were approved after a plethora of questions from the opposition benches.
The Ministry of Public Works asked for $400M for the maintenance of roads and $100M for maintenance of other infrastructure; both of those sums were also approved.
The Ministry of Amerindian Affairs requested $500M provision for projects and programmes in Amerindian Communities and after some amount of drama and extensive questioning that too was approved.
The Ministry of Public Works also sought approval for a further $400M for provision of additional inflows to facilitate the completion of bridges and structure and another $1B for provision of construction and rehabilitation of community roads, and those were approved.
Just when the government must have thought that the House was in a streak of approval, the Opposition voted against a request for $500M to facilitate construction and supervision of sections three to seven of the Amaila Falls access road.
Making its name as one of the few line items that went though without a single question was the Ministry of Home Affairs’ request for $337,984,510 as provision for the completion of the Citizens Security Programme.

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