GGMC has a history of loans to Govt agencies, Ministries

Feb 01, 2015 News

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The Guyana Geology and Mines Commission (GGMC) has defended its recent $3B loan to the Central Housing and Planning Authority (CH&PA) in the face of criticisms from members of the political opposition and charges that such a move was against the laws of the Commission.

Opposition Leader, David Granger, had said on Friday, that he felt this approval was not only out of order but outside of the law.
He said that his understanding is that the rules governing the expenditure of GGMC’s funds are clearly defined and that they are only supposed to be used for activities which can advance the work of the Commission.
Granger had said, too, that it is outrageous that state funds which do not go into the Consolidated Funds could be used improperly for such a speculative matter in the housing sector.
He said that it is of course part of the lawlessness that usually takes place under the current administration.
But GGMC insists that the Loan Agreement with CHPA is undoubtedly legal. It said that Sections 10 to 19 of the GGMC Act provide the legal framework for the Commission to undertake the granting of loans.
It highlighted that Section 10 states, “Subject to such conditions as it may deem fit to impose in particular cases the Commission may, out of its funds and resources, make loans in accordance with the provisions of this Act in that behalf, in the performance of its functions”.
The Commission stressed that as it relates to the Commission’s functions alluded to in the latter part of Section 10; Section 4 of the Act clarifies these functions.
It pointed out that specifically, Section 4 (1) (f) of the Act provides the Commission with the latitude to undertake activities that would further the business of the Commission and the promotion of its functions by stating “to carry on all activities, the carrying on of which appears to the Commission to be requisite, advantageous or convenient for, or in connection with, the exercise of its functions”.
It emphasized too, that the decision to provide a loan to the Housing Authority was done purely as an investment opportunity given that the rate offered was five percent; 3.2% greater than the rate currently enjoyed at the commercial banks. In addition, it said that it was seen as another opportunity to contribute to the growth and development of the nation.
More significantly, the Commission said that the granting of this loan should not be seen as an isolated case where monies are being expended or utilized to support other agencies and the development of the country.
It sought to make known that the Commission has a history of providing financial assistance to other entities. It cited numerous cases where it gave monies to agencies over the 2012 to 2015 period.
The Commission gave $932,291for rehabilitation works to the Bartica Pavilion, to the procurement of the Continuous Operating Reference Station (CORS) at a cost of $80,039,806 for the implementation of eight stations over a period of six months which will facilitate real time GPS surveys for all agencies and Ministries; it transferred $70M in 2013 to the Office of the Prime Minister to improve electricity supply at Mahdia, Port Kaituma, Mathews Ridge and Moruca.
In this regard, $25 M was allocated to Mahdia Power & Light Inc., $25M to Port Kaituma Power & Light Inc and $20M to Mathews Ridge Power & Light Inc.
Last year, GGMC also funded the restructuring of the Environmental Protection Agency (EPA) at a cost of USD$240,000. It had also transferred $2B to the National Protected Areas Trust Fund that year.
It said, too, that financial support to the tune of USD$450,000 was also given to Iwokrama International Centre for Rainforest Conservation and Development while it also transferred $1B to the National Treasury.
Apart from the $3B loan it recently granted, it had provided to the Ministry of Public Works the sum of $756,745,475 for the undertaking of Road Works in 2012; $3,136,680 for remedial road works to ensure that it is safer for travel by way of reducing its slope; payment of $288,309,350 to the Ministry for more rehabilitation of roads in 2012 and the transfer of $61,418,000 to the Ministry of Public Works for emergency works under its Hinterland Programme.
Still in the category of its contributions to the Public Works Ministry, the Commission also transferred $21,065,925 for rehabilitation works conducted to airstrips at Ekereku Bottom (Region 7), Lethem (Region 9) and Imbaimadai (Region 7), $25,763,826 for the rehabilitation and widening of the road from Mathew’s Ridge to Baramita, Northwest District, and $31,374,288 for the rehabilitation of the Arakaka to the M4 (Manikura Junction) to the M2 (18 Miles) Road.
It cited that it also paid the said Ministry $35,576,056 for contractual road works in Tamakay; $89,691,706 for the rehabilitation of the road from Brain Sucre Junction to Tumatumari and Micobie Village, Region Eight; and $37,595,974 for the Hinterland Road Programme to facilitate the rehabilitation of the Ituni-Kwakwani Road.
Other contributions were “Rehabilitation of the road from Tamakay to Ottomung Head and Tamakay Junction to Puruni Roadway at a cost of $169,056,450,  rehabilitation of the road from Brian Sucre Junction to Blackwater at a cost of $329,099,606; the payment of the sum of $168,478,322 to the Ministry of Public Works to cover variation/additional works for the Karasabai-Monkey Mountain Road Rehabilitation; the payment of the sum of $18,661,000 to the Ministry of Public Works to facilitate the rehabilitation of the log bridge 18 miles before Kurupukari and Funding of emergency rehabilitation works from Itaballi Landing to 12 miles before Itaballi at a cost of $79,450,000.”
Funding to the said Ministry was also provided for emergency rehabilitation works from 12 miles before Itaballi to Puruni Landing at a cost of $60,243,410; rehabilitation of Mahdia Internal Roads and emergency works at a cost of $35,888,775 in 2013; emergency rehabilitation works for the road from Toraparo Junction to Pappyshou Landing which was to the tune of $54,026,940.
Others were for rehabilitation of the Aremu Road – Phase 1 costing $129,475,767 in 2013 and continued in 2014, construction of a Bridge at Tiger Creek costing $8,541,800 in 2013, rehabilitation of the road from Matthew’s Ridge to Baramita costing $60,000,000, rehabilitation of the road from Arakaka to the M4 (Manikura Junction) to the M2 (18 Miles) Road costing $73,000,000 and the rehabilitation of the Puruni Road costing $47,100,000.
The Mines Commission said, too, that $17,500,000 was provided for the rehabilitation of the Oku Bridge and$65,000,000 for the rehabilitation of the Tamakay Road.

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