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Region 5 REO chased out of PAC meeting … Financial Secretary to probe failure to cooperate with Auditor General on $94M drug procurement

Jun 19, 2018 News

Ovid Morrison, the Regional Executive Officer (REO) for Region Five (Mahaica-Berbice) will face an investigation for his alleged non-cooperation with the Auditor General’s office which is looking into how taxpayers’ monies are spent in the region.
Morrison and his team of regional officials appeared before the bi-partisan Public Accounts Committee (PAC) at the Parliament Chamber yesterday to be grilled on expenditure for 2016.
However, during the hearing, they were told to leave the meeting after it was revealed that auditors were experiencing difficulties acquiring information related to the procurement of drugs.
The PAC members attempted to secure reconciliation information to ascertain how the region received $94M in excess drugs from the Public Health Ministry.
PAC Chairman, Irfaan Ali, huddled with the PAC members and advisers who included the Auditor General (AG) Deodat Sharma; Financial Secretary, Dr. Hector Butts and Accountant General, Jennifer Chapman.
Following that meeting, Ali requested that Butts conduct the investigation into the non-cooperation claims. Ali reminded that Morrison was sent away previously to get information requested by the PAC.
“After consultations with the PAC and its advisers, we are of the view that you have not made any attempt to correct your ways and be prepared for us. In these circumstances we have decided to ask the Financial Secretary to examine all the facts surrounding this matter and to take the necessary administrative and other measures provided under the law, as he is required to do,” Ali stated.
He noted that Part 6 of the laws of Guyana, under offences, states that a person who knowingly and without lawful justification or excuse intentionally obstructs, hinders or resist the Auditor General or officer authorised by him in the exercise of his power under the Act, commits an offence.
According to Ali, the PAC remains dissatisfied with the response to the AG’s report, and with the performance of the region at the sitting.
“We are of the firm view that no attempt was made to provide the answers or information required to help the Auditor General at PAC. On this note, we will not be able to continue the examination for Region Five until the Financial Secretary would have completed his task which he is empowered to so do,” Ali noted.
The region transferred $135M by way of two Inter-Departmental Warrants to the Ministry for procurement drugs and medical supplies on behalf of the Regional Administration.
The first warrant was for $60M. Another warrant valued at $75M was issued. According to the REO, the Regional Administration received a nil financial return, indicating that the amount was not expended.
Then there was $20M which the region spent to procure emergency medical supplies.
“We are trying to get an explanation as it relates to how you account for the excess,” said Juan Edghill, who was chairing the PAC meeting at the time.
Edghill stated that he and other members of the PAC received a copy of correspondence between Morrison and the Auditor General.
Edghill described the exchange as ‘highly unusual’.
“Had you allowed the Auditor General access to the information in your region we probably would not be spending 40 minutes on this particular matter,” Edghill stated.
According to Edghill, the REO wrote a letter indicating to the AG that none of his staff could get any information unless they went through him.
Edghill indicated that the Audit Act states that the head of the budget agency or governing body shall furnish the auditor general from time to time, or at regular period as may be specified by the AG, with the accounts of the transactions of the budget agency or entity.
“It didn’t leave for discretion, Sir. It shall…” Edghill told Morrison.

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