Accounting reports of NICIL, GuySuCo, GPL should be included in National Budget

Jan 24, 2014 News

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– Opposition
By Kiana Wilburg

A Partnership for National Unity (APNU)’s Shadow Finance Minister, Carl Greenidge, says that the Minister of Finance, Dr. Ashni Singh should provide information to help account for the governance of agencies such as NICIL in the National Budget.
Greenidge is also insisting that detailed accounting arrangements for funds provided to the Guyana Sugar Corporation (GuySuCo) and Guyana Power and Light Inc. (GPL) should be treated in like fashion.

Expressing similar sentiments was Vice Chairman of the Alliance For Change (AFC), Moses Nagamootoo.
“When it comes to NICIL there is an outstanding display of stubbornness to make full disclosure of the moneys that are not going into the consolidated funds. The company, which is headed by Winston Brassington, operates like a sub-treasury to which state assets are directed and it decides how resources from state assets should be spent, whereas these resources should be part of treasury.
The Company literally contributes to the deformity of the financial system. It operates as a mini-elected government by itself and any entity that is the recipient of funding from taxpayers ought to be accountable to parliament, either by way of periodic reports or review by the economic and services committee.”
Nagamootoo added, “Any request to make them more accountable should not be spurned as unreasonable. The government must see the call for full disclosure to Parliament as an act of fiscal responsibility. “
Greenidge said that he had emailed the Minister of Finance on these requests, but he is yet to respond.
The APNU parliamentarian also disclosed that he had submitted to the Minister a list of his issues relating to the 2013 budget, and the issues are by and large those that need to be addressed for the effective management and accountability of the expenditure and revenue of the country.
“While these issues were brought to the table when the 2013 budget was being examined, APNU is of the firm belief that the issues need to be addressed, since it extends to the budget process as a whole.”
In addition to this, Greenidge noted that APNU in its deliberations on the 2013 Budget had several concerns about a number of factors which form the background against which “economic policies are to be cast”.
While he highlighted these issues, the Former Minister of Finance explained that this attempt to bring to the surface their concerns with the budget should not be misconstrued to mean that the faction is trying to prohibit the government from its right to fashion the budget. He insisted, however, that the budget must also serve as an instrument which promotes national development, and it is to that effect that the Opposition made its concerns with the budget process known.
Greenidge stressed that several issues are not taken into account by the Minister of Finance when drafting the budget.
“For example, the widening income and wealth disparities within the society, the spiraling cost of living and the plight of the poor and vulnerable including the old, young unemployed females and males, especially those without adequate education and the need for better pay and conditions of work for the poor, as well as nurses, teachers and public servants across the country.”

In preparing the Budget, Greenidge suggested that the Government and its advisers should seek to address job creation, training, education and health facilities which can be accessed by the less fortunate.
After reminding that the budget does not only examine the expenditure but also revenue, he then stressed the need for the “completion of the tax reform process of which the Value Added Tax was an important element”.
He explained that in response to this concern about both the level of taxation and the unfair weight borne by some segments of the community, President Donald Ramotar established a Commission to examine the tax regime.
The APNU Member of Parliament said that he is yet to see a report on the work of the said team and this needs to be included in the budget.
In addition to this, he said that it is also imperative that the country put in place arrangements to ensure that the resources of the state are appropriately and fairly managed as well as distributed.
Greenidge then suggested that the first step in this direction would be to establish acceptable standards of financial administration and management at the national level.
He noted too that there is a serious need for the discussions on the budget to also cover all measures affecting revenue, which include the disposal of state assets and criteria for such action.
Moreover, given the importance of the capital programme in the overall budget, Greenidge asserted that it is imperative that there be arrangements for the careful consideration of the major elements of that programme.
“The criteria and rationale for the overall programme are missing. The key documents on which decisions are based have yet to be seen by any member of the Opposition, let alone by independent technical teams,” Greenidge said in conclusion.

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