NDIA Board Members paid for non-existent meetings – Audit Report

Jun 25, 2016 News

A Forensic Audit Report into the National Drainage and Irrigation Authority (NDIA) for the period November 1, 2011 to May 31, 2015, has revealed that the failure of the Board of Directors to meet on a regular basis to ensure the smooth operations of the agency, had contributed to the weakening of the agency’s corporate governance.

Corporate governance is the system of rules, practices and processes by which an entity is directed and controlled. It is without corporate governance that leads an entity into mismanagement and chaos.
The auditors stated that they are of the considered opinion that the failure of the Board of Directors and senior management to provide good governance, led to a loss of confidence in the governance and management of NDIA.
They also pointed out that it is therefore the task of the new Board of Directors to use the Audit Report as a basis to do further work in the troubled areas to improve the quality of management at the agency.
The forensic audit showed that Board Members were being paid $1.6 M for nine Board Meetings for the period July 2014 to March 2015, however the records revealed that only two Board Meetings were held for that period.
The auditors continued that aside from the “overpayment” to Board Members, the Chairman of the Board failed to hold the required number of statutory meetings, thereby exacerbating the weakness of NDIA corporate governance.
The auditors recommended that a “vigilant” board of directors be established that understands the roles that are needed to be played, and must be willing to “proactively” participate in strategic decisions; ask management tough questions; oversee management’s actions; monitor management’s ethical conduct, financial reporting, and legal compliance; and determine the entity’s risk profile.
“We believe that the board’s responsibility is to establish strategic goals to ensure that Government gets value for its money. They must then direct management to implement these strategic goals,” the auditors stated. The auditors also outlined several primary duties that the board must carry out including: overseeing the hiring process for other top executives; monitor management’s sustainable strategic, financial, and operational goals in achieving long-term value; and setting the agenda for board meetings.
The auditors stated that these were “sadly” lacking in the previous board while stating that they believe “good members “should possess the requisite attributes to get the best performance.
The NDIA functions as Guyana’s apex organization dealing with all public matters pertaining to management, improvement, extension and provision of drainage, irrigation and flood control infrastructure and services in declared areas of the country. It was established in 2006 by an Act of Parliament, No.10 of 2004.
The authority is engaged in the planning for the primary purpose of locating, evaluating, conserving and distributing water resources of the country for agricultural purposes.

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NDIA Board Members paid for non-existent meetings – Audit Report

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