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NDIA doled over $426M to ‘political’ body
-but paid little attention how monies were spent
A forensic audit report into the National Drainage and Irrigation Authority (NDIA) found that the entity doled out hundreds of millions of dollars to a community organization but there was little attention how the monies were being spent.
Former CDC head, Philomena Sahoye-Shury
According to the NDIA Forensic Audit Report for the period November 1, 2011 to May 31, 2015, prepared by Nigel Hinds Financial Services, and released recently by Government, the Community Development Councils (CDCs) in Guyana were essentially the vision of the late and former President, Dr. Cheddi Jagan.
The report explained that after winning the National Elections in 1992, Jagan challenged all communities to refresh the landscape, and in fact to restore the country’s image, with the task of cleaning up all canals, parapets, lawns and backwards.
NDIA with the national responsibility for drainage and irrigation in Guyana has taken the CDC mandate upon itself to support these organizations to reduce the incidence of flooding on the coastland in Guyana.
However, auditors found “extremely limited” information of the actual operations of this body and the number of CDCs’ that exist in Guyana.
“There are detailed Standard Operating Procedures for CDCs’ including the legal basis, and a synopsis of operational procedures. The CDC Direction Agency was headed by Ms. Philomena Sahoye-Shury.”
Sahoye-Shury ran into trouble with the new coalition Government in June last year, weeks after the administration took office. She was sacked after the administration said she failed to report for duty after the May11th elections.
Auditors reviewing CDCs’ work said they interviewed one engineer, Lall Peterdeo, and a member of the Finance Office and found a number of worrying things.
“The Community Development Councils duplicates the work done by NDIA and the unnecessary cost in its administration could be reduced if its entire operations are restructured and absorbed by NDIA.”
The report said that it is the general opinion that the CDC was also used as a mechanism to create employment for the governing party supporters.
“The management of CDC according to the Standard Operating Procedures, requires activity reports to be submitted to the finance office of NDIA, along with copies of registrations, monthly financial statements and bank statements for review.”
In addition, the audit report said, engineers at NDIA are required to review the cost and benefits of all projects initiated by CDCs.
“However, based on information available, the management of NDIA is hardly involved in providing any oversight in financial or engineering matters. There is no evidence from the management at NDIA that audited financial statements were ever prepared by the CDCs.”
The report disclosed that it is difficult to assess its stewardship in the absence of audited financials and interviewing the officers that are involved in the day to day activities.
For the years 2013 and 2014, NDIA disbursed $426.27M to CDCs for cleaning and maintenance of channels and canals etc.
“NDIA were unable to provide us with information for years 2011, 2012 and January to June 2015.”
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