NDIA financially supported GuySuCo without Cabinet approval

NDIA financially supported GuySuCo without Cabinet approval – Audit

Jun 16, 2016 News

The Forensic Audit into the National Drainage and Irrigation Authority (NDIA) has revealed that the entity financially supported the Guyana Sugar Corporation (GuySuCo) without Cabinet approval.

The auditors noted that during 2013, $500M was paid to the CDIP Account. That money was used to purchase Machinery and equipment for the Corporation.
The report indicated that the authority acted as a “Banker” to GuySuCo. The Chief Executive Officer (CEO) – according to the report, explained that all the machinery and equipment belonged to NDIA but were used by GuySuCo.
However, these units were shown as property not belonging to NDIA on the report provided by finance staff and the matter was not discussed at the Board level, the report stated.
The auditors also stated that source documents to verify transactions of monthly receipts were not available for examination. Also, returned cheques and bank statements were not available.
Efforts were made also by the auditors to determine the organizational structure in place and the officers responsible for the management of the Community Development and Irrigation Project (CDIP) but the information was not provided by NDIA, auditors stated.
Also, no audited financial statements were available for the activities of CDIP from its inception to date when it was terminated at NDIA.
The auditors are of the considered opinion that the CDIP Project was another duplication of work that could have been undertaken by NDIA management rather than treated as a separate project.
NDIA was de-linked from the Ministry of Agriculture (MOA) in 2004 and received Capital Assets from the ministry upon its establishment as a separate entity. The analysis of the registration documents of machinery revealed that ownership of the machinery NDIA acquired from the ministry was never vested in NDIA.
This practice continued well into 2014 when 25 excavators procured for NDIA were registered in the name of Ministry. The auditors also reported that there were some units that were correctly registered to NDIA. Some other machines are described as owned by “MOA and NDIA)”.
Meanwhile, 10 Hyundai R220 LC Excavators were purchased through NDIA in November 2013.
The auditors indicated that these machines are registered as owned by the MOA and are listed as “MOA NDIA Property”.
“These excavators are listed as located at GuySuCo. The GuySuCo situation would be dealt with under capital expenditure as it appears as though NDIA acted as a bank to that Corporation.
“A clear distinction has to be made as to what assets are owned by NDIA and the MOA since NDIA is a separate entity incorporated by an Act of Parliament. Unfortunately, management could not provide any explanation for this irregular practice.”
Additionally, approximately 58 pieces or 53% of the Machinery are more than four and half years old and the auditors were not able to verify the condition of the machines.
Immediately noticeable, the auditors stated, were the substantial sums spent on capital and routine maintenance however, the justifications for that level of expenditure could not be explained.

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