Govt. opts not to renew Dr. Butts contract as FS – Ministry of Finance

Oct 02, 2018 News

…says replacement found, other key positions to be filled soon

Finance Secretary, Dr. Hector Butts

The Government did not offer Dr. Hector Butts a new contract as Finance Secretary in the Ministry of Finance.

This is according to a letter to the editor from the Ministry, in response to an article published in Monday’s edition of the Kaieteur News.

According to the Ministry, the Government indicated by way of letter to Dr. Butts, on September 13, 2018, its decision to not renew his employment contract after it expires on October 26, 2018.

There were reports that Dr. Butts had opted to leave, but the Ministry indicated that this was not the case. The Ministry noted that Dr. Butts by way of letter dated September 25, 2018 acknowledged receipt of the letter.

Beyond these two pieces of correspondence, the Ministry of Finance stated that contrary to reports, there has been no other communication by Dr. Butts on matters relating to his contract to the Minister of Finance, Winston Jordan.

The Ministry indicated that the appointment of the Finance Secretary is done by the President, and it is finite and that a Finance Secretary has been identified and an offer of employment accepted by him.

According to the Ministry, his tenure will begin on November 1, 2018.

Dr. Butts’ impending departure will follow those by three other top officials at the Ministry in the past five months. Chief Planning Officer, Dr. Nelson Modeste, and Deputy Finance Secretary (DFS), Louise Bouyea resigned.

Donald DeClou, the Chief Executive Officer (CEO) of the National Procurement and Tender Administration did not secure a new contract.

“We wish to also allay any undue fears that your article may have provoked that the Ministry of Finance is in any kind of crisis,” the Ministry noted.

According to the Ministry, the positions of DFS and CEO of National Procurement and Tender Administration Board (NPTAB) were advertised. The response, according to the Ministry, was tremendous.

“We are on course to have both persons installed by October 15, 2018,” the Ministry stated.

Dr. Butts is considered ‘the gatekeeper’ of Government’s finances in that he oversees payments. It was Dr. Butts’ signature that appeared on a letter that was leaked last year on the controversial US$18 million signing bonus provided by oil giant ExxonMobil to Government.

There are claims that the Government intended to keep the transaction concealed.

The letter was addressed to Central Bank Governor, Dr. Gobind Ganga, and dated September 20, 2016. It instructed that the Bank of Guyana should not treat the money as part of its reserves. The letter showed that a request was made for the opening of a foreign currency account to receive a signing bonus from ExxonMobil.

Additionally, the Ministry had taken an unusual decision to publicly correct a statement made by Dr. Butts during a meeting at the Public Accounts Committee (PAC) on the administration of the teachers’ housing fund.

Dr. Butts had indicated that the Ministry was taking over the administration of the fund, which is earmarked to be loaned to teachers so that they can access low cost housing loans or procure their own house.

The FS has also been vocal at the PAC about the way in which Regional Executive Officers (REOs) were administering projects and accounting for taxpayer funds.