Allocation for Amaila Falls should be removed

Apr 03, 2014 News

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…until all documentation is provided

– 2014 budget does not reflect all the revenues

Executive members of the Alliance For Change (AFC) disclosed yesterday that the 2014 budget presented by the Minister of Finance, Dr. Ashni Singh, does not reflect all the revenues. They added that the Ministers who are requesting monies for certain projects will have to provide the necessary information to justify why it should be approved.
This, among other critical concerns, was raised by AFC Leader, Khemraj Ramjattan, and supported by his Vice Chairman, Attorney at Law, Moses Nagamootoo.

While reiterating that its walk out during the reading of the budget was to register its protest against the violation of the Constitution regarding meaningful consultation on the Budget, Ramjattan stressed, “We will however, participate vigorously in the debate and the consideration of the Estimates in the Committee of Supply.”
In making their concerns known to media operatives during a press briefing held at Public Buildings, he said that the public should call on the Minister of Finance to rectify the Estimates before the Budget goes to the Committee.
Ramjattan said that Article 216 of the Constitution requires that all public revenues or other moneys be paid into the Consolidated Fund. Therefore, the Budget must include several critical things.
It must include the balances currently held and the projected surpluses for 2014 by the Guyana Geology and Mines Commission; the Guyana Forestry Commission and also for the Guyana Harbour Bridge Corporation; the Cheddi Jagan International Airport Corporation; the Guyana Co-operative Financial Services; and the National Frequency Unit; the Amerindian Purpose Fund; the Infrastructural Development Fund; UK Programme Aid — GEA account Agriculture Rehabilitation Project Loan Account; Social Impact Amelioration Programme account; and every other public authority in Guyana.
He added that the total amount collected by the National Industrial and Commercial Investments Limited up to December 31, 2013 from the sale of Government properties and from dividends received from Government investments, must also be paid into the Consolidated Fund.
“We are recommending that the amounts requested for GuySuCo and the Guyana Power and Light Inc. be supported by proper explanations and documentation including business plans, justifying the request…The relevant Ministers have failed to table annual reports of GuySuCo for several years and also for Guyana Power and Light Inc.
“We wish to put the Ministers on notice that submission of all reports and statements required by law must be tabled in the National Assembly,” the AFC Leader expressed.
As it relates to support for the sum allocated to the Specialty Hospital, Ramjattan said that this is no different. He is therefore demanding that the National Assembly be provided with the proper documentation to support the request for the allocation.
“We need to know who will own the Hospital, how it will be managed, the pricing policy for the services to be provided, whether a member of the public would be excluded if that person could not afford to meet the cost to be imposed; and whether the State will be providing an annual subsidy to the Hospital.
“Further, we need the public to know why Exim Bank of India has not made further releases to Surendra Engineering who was awarded the contract for construction.”
The Attorney at Law said that the allocation for the Amaila Falls Hydropower Project (AMP) of US$80 million be excluded from the Estimates until full documentation is provided to show the precise purpose of the investment, the name of the company (ies) in which the equity is to be invested, the ownership structure and a Business Plan justifying the expenditure.
He said, “The AFC is aware that the last Interim Licence issued under the Hydro-Electricity Act Cap. 56:03 expired on December 31, 2013. We need to know, therefore, whether there is currently a Licence in place.
The pursuing of Amaila seems questionable in the face of the actual drying up of the water for extended periods, and Sithe Global making it very clear that it will not be backing the project in view of not obtaining full Parliamentary support.
Thus, this proposed allocation for this project warrant serious re-consideration.
“And we have not been informed about the contents of that much awaited due diligence study from the 1DB.”
Ramjattan added that the government claims that US$115 million has been paid by Norway but only about US$70 million appears to have been transferred. The politician demands that a full report be presented.
The AFC is aware that last year, the Minister of Finance spent sums of money in violation of the Appropriation Act and it wants Dr. Singh to account to the National Assembly for those sums.
The opposition party has also noted that Dr. Singh has re-designated the line item ‘Revision of Wages and Salaries’ for which he was unable to account for three billion dollars in 2013.
“Readers will recall that the 2013 budget had provided $4,403 million for revision of wages and salaries, which was around 13 per cent of all employment cost at January 1, 2013.”
The AFC now asks, “If only five per cent was paid as increases, then where did the rest go?”
In this regard, Ramjattan said that he is of the opinion that to avoid such questions, “The Minister decided this year that he would just change the item Revision of Wages and Salaries to Other Employment Costs.
“Such a heading would include pensions, gratuities and other benefits which are separately provided for. The AFC expects some honesty from the Minister. He must tell us what exactly Other Employment Costs represents and how much is proposed for increasing the wages and salaries of public workers. He must not cheat workers with manipulating the Estimates.”

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