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Scrap Metal Unit officials neglected their responsibilities — Audit Report finds
Officials of the Scrap Metal Unit (SMU) were not carrying out their responsibilities and duties for the period of 2012 to 2015. According to a key audit report by Ram and McRae Chartered Accountants; the controversial Scrap Metal Unit officials had a stipulated list of duties regarding scrap metal dealers and their day to day operations which were ignored or in some cases partially completed.
These duties included daily inspection of scrap metal yards that entailed checking for licenses, accrued scrap metal records and any illegally acquired metals.
The duties extended to observing the loading process of scrap metal into containers to ensure that there were no illegal materials or substance stuffed into containers for export, as well as to partner with the Guyana Police Force (GPF) and officials from Guyana Metal Recyclers Association (GMRA) to conduct investigations into vandalism and theft of scrap metal.
The listed responsibilities continued to SMU officials verifying the “type of metals being exported i.e. Ferrous & Non Ferrous metals,” the checking for suspected vandalized metals e.g. manhole covers, electrical and telephone cables etc. and to ensure containers that were packed in the legally approved yards under the inspection of the Scrap
Metal Unit were the said ones being shipped and ultimately the checking of “collection yards” for any suspected vandalized metals and observing the movement of scrap metal from collection yards to licenced yards.
The glaring neglect of these duties was highlighted in Ram and McRae’s Audit Report.
The daily inspection of scrap metal yards were supposed to be carried out by the Chief Inspector, an Enforcement Officer and a Driver, the audit report noted that they partially complied with this responsibility.
Observational duties to ensure that no illegal materials or substances were stuffed into containers for export was also neglected as the team from SMU only did spot checks.
The Auditors noted that they were unable to state if partnership with the GPF and GMRA to investigate vandalism and theft of scrap metal existed, in one instance manhole covers belonging to Guyana Water Inc. (GWI) were found at a dealer on East Bank Demerara, the information of the dealer and his customer was handed over to GWI and the GPF.
The packing of containers in legally approved yards under the monitoring of SMU officials were not always carried out as in the instance noted by the Auditors where Joseph Persaud packed containers in an unlicensed yard at Parika.
The report went on to state that contrary to section 12 (1) (f) of the Old Metal Dealers act Chapter 91:08 which states “he shall not ship or export from Guyana any old metal unless it has been inspected in its original form by an engineer approved by the Minister who shall make out and deliver to the Commissioner General of the Revenue Authority, a detailed description of the article comprising such old metal, giving the weight, kind and variety of same”; no engineer ever inspected the container.
The complete neglect of observing movement of scrap metal yards to licensed packing yards was summed up in the observation by Auditors which stated that “This function was never carried out by the Unit. Inspectors and enforcers would visit unlicensed yards but we were informed that they do not observe the transfer of metals to licenced yards.”
Ram and McRae’s report shows that there were 12 persons employed in the Scrap Metal Unit which included a Chief Scrap Metal Inspector, four Scrap Metal Inspectors, three Enforcement Officers, and three Drivers/Enforcers with Taslim Baksh as the Administrator.
“Monthly payments to Inspectors and Enforcement Officers were paid without any deduction of PAYE and NIS contributions. It is the obligation of the employer to deduct and remit taxes and NIS contributions payable.”
Table below reflects employees and their positions.
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