So the PPP has finally admitted to its corrupt behaviour

Jun 23, 2016 Letters

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Dear Editor,
Finally, Rohee admits to the corrupt modus operandi of the PPP Government in the widespread use of sole sourcing; the conveyor belt for his party to siphon off state revenues and resources to relatives, friends, party members, loyal constituents, business partners, foreign friends and allies. This admission provides insights on how the state treasury became the PPP slush funds for rewards and patronage.
I am still dazed by Clement Rohee’s statement in yesterday’s Kaieteur News (June 21, 2016), and I quote: “Yea, well, that (accusation) may have been leveled against us, but that’s the previous administration. But now they are in the Government and they have to face the music if they do it as well. That’s the nature of politics.” It is my understanding of his statement in the context of sole sourcing, that everyone, regardless of political party affiliation, must face the music or be held accountable.
The most glaring example of sole sourcing (a no-bid contract to one person or company) is the sweetheart deal to Bharat’s best friend and business partner Ramroop. First, GPC was practically gifted to him, along with Sanata, thereafter the New Guyana Pharmaceutical Company (GPC) received most favored status from the previous government to monopolize medical supplies, reaping huge profits which previously was state revenue. The list of similar deals which followed is long, well known and shameless. But shame is not a word the PPP cabal understands, given the moral high ground they now claim.
However, the forensic auditors have found that sole sourcing had not only become the main channels of how that government did business with the private sector and individuals, but is the system put in place to circumvent the laws, accounting principles, audits, and in turn provide for kick-backs and enrich executives, relatives, and party supporters in a corrupt network.
After reading  two (MMA-ADA & NDIA) of the thirty three forensic audit reports posted on the Ministry of Finance website, it boggles the mind as to how this corrupt system could have evaded the scrutiny and elicit corrective action of our Auditor General and our Parliament. The MMA-ADA forensic auditor TDA LAL & Co. found that contracts under one million dollars were not being awarded based on the three quote system of goods and services where the lower price with fair quality is usually accepted. They also found that when sole sourcing occurred, it is possible that better quality or cheaper price could have been obtained if contracts were advertised by tender. Many purchase requests were made at the discretion of department heads with no invoice or value-for-money principle. Further to that, there is contract splitting to stay below the legal tender board or Cabinet requirement. These auditors also flagged the possibility of collusion between staff and external parties in the procurement of mechanical spares, among many other malpractices.
The forensic audit of the National Drainage and Irrigation Authority (NDIA) is much more appalling when you consider how the state’s resources were managed worse than a private cake-shop. Here, Nigel Hinds Financial Services made the troubling observation that for the short period Jan. – July 2015, a reviewed of the Projects awarded showed that out of G$647,338,367. – 59% were awarded by sole sourcing, 17% by Quotations, and 24% by Public Tendering. All of the sole sourcing contracts were granted to Water Users Association (WUA) which comprise of nine farmers associations for the organization and management of Secondary Drainage and Irrigation(D&I) structures and inputs for agricultural production and rural housing. Every six months, the WUA submit requests for contracts and are paid accordingly. There are many reports of mismanagement but none of these associations have prepared annual financial reports or have financial statements audited for the years 2011, 2012, 2013, or 2014.
Nigel Hinds Financial Services has also found the NDIA spent in excess of G$12 Billion in both Capital and Revenue Expenditure over the past four years and the Internal Audit Unit or watchdog for NDIA only has one person who is tasked with the responsibility of  auditing the entire organization. In addition to that, the internal auditor erroneously reports to the CEO who showed little or no interest in the internal controls, generally.
For obvious reasons, Rohee did not advocate discontinuing the system of sole sourcing which lacked controls and accountability while the PPP Government was in power. Often, the system was manipulated to accommodate sole sourcing and kick-back to executives.
There is dire need to prosecute those who stole state resources and introduce fool-proof systems that would lead to accountability to the Guyanese taxpayers of state revenues as cited by out-going U.S. Deputy Chief of Mission Bryan Hunt. In the interim, our leadership needs to take action to prosecute wrong doers and start breaking up this corrupt system by way of removals, transfers and re-shuffling of senior public sector functionaries including Permanent Secretaries and senior legal officers who are slow to act in cleaning up this mess. Not to act is lunacy or flagrant neglect.
Max Wallerson

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