Forensic audit finds…GMC Board covered fraud by clerk in 2012

Jun 08, 2016 News

– settled matter privately

The forensic audit into the Guyana Marketing Corporation (GMC) has highlighted an instance back in 2012, where a female employee embezzled a sum of money, only to have the corporation’s Board of Directors shield

Guyana Marketing Corporation

her from prosecution.
The audit, which covered the period of January 1, 2012 to May 31, 2015, was conducted by Saykar A. Boodhoo. According to his report, GMC in 2012 became aware of several instances of fraud amounting to $557,190.
Kaieteur News understands that the employee, an accounts clerk, was given added responsibility due to the official absence of the then Accountant. According to sources, realizing the weak internal controls, she then took advantage of the system.
Sources indicate that the clerk was creating receipts, ‘cutting’ cheques into her name and preparing fraudulent invoices. According to the auditor in his report, however, the Board of Directors took the decision to not involve either the Auditor General or the police.
“Instead the staff was given the opportunity to repay the embezzled amount,” the auditor stated in the report. “By settling the matter privately, GMC is sending the wrong message that employees do not have to worry about the consequences of dishonesty.”
“In the event of fraud GMC should involve the Auditor General to investigate and hand over the matter to the police as appropriate.”
The forensic audit has already highlighted an instance where the board of directors may have turned a blind eye to faulty work done by Trinidad firm, Constantine Engineering and Construction Services, on its offices at Robb and Alexander Street.
According to the forensic auditor, the structure was replete with defects and sub-standard construction materials, while the contractor recused himself from the project and went along his way.
The auditor had stated that throughout the building, substandard work was evident. For instance, the auditor stated that the wood used to construct the internal walls was poorly manufactured and the concrete walls are chipping, with paint peeling and falling off the walls.
“Within a few months after the building was handed over to GMC, there were leaks throughout the building via the roof,” the auditor stated. “A contractor (had to be) hired by GMC to repair the roof.”
The auditor detailed that old lumber and old zinc sheets with euroband were in fact used to construct the roof of the building. This is despite the bill of quantities for the contract stipulating greenheart lumber be used for the building’s roof.
The auditor made it clear that from his investigations, the then GMC board and senior management was making several visits to the building during construction. He determined this based on discussions with the general manager and the Accountant.
“However, the directors failed to highlight the blatant poor quality of work performed by the contractor. There is no documentation to show that the board acted to prevent the fraud that was perpetuated against GMC by the contractor.”
In 2012, GMC’s Board of Directors consisted of approximately 14 individuals. From 2012 to February 2015, GMC was headed by Nizam Hassan as general manager (GM).
In 2015, Mr. Hassan was named the acting General Manager of the GRDB, while Ms. Ida Sealey-Adams became the acting General Manager of GMC. They have both since been confirmed in their respective positions.

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