Opposition calls for probe into several 2020 multi-million$ state contracts

Jan 30, 2020 News

The Opposition has written the police asking them to probe several contracts which appeared to have been illegally signed this year.

Juan Edghill

From all indications, the contracts were catered for in the 2019 budget, but were only signed this year.
Two of the projects, for the construction of schools at Yarrowkabra, Soesdyke highway and for the Essequibo Coast, are a whopping total of $1.3B.
The Auditor General, Deodat Sharma, had warned against any signing of contracts this year for monies budgeted last year. It is against regulations, the official had said.
Bishop Juan Edghill, a former Parliamentarian for People’ Progressive Party/Civic , in his letter to Commissioner of Police, Leslie James on Tuesday, said that it has come to his attention by way of news reports that new contracts for public works have been signed by Permanent Secretaries of various ministries. This is in flagrant violation of the laws of Guyana. In fact, it was reported that a total of 57 contracts were noted by a Cabinet sub-committee as of the December 30th, 2019.

Auditor General, Deodat Sharma

“The Auditor General of Guyana made it very clear to the media a few weeks ago that it is not allowed under the law for new contracts budgeted for in 2019, to be signed in 2020″, yet we found that several contracts were signed in 2020, including the largest of those being for the sum of eight hundred and twenty-seven million Guyana dollars, (GYD 827M), which was signed with BK International for the construction of a secondary school at Yarrowkabra.”
Edghill also said that it has come to his attention that despite the absence of a signed contract for the construction of a school at Abram Zuil, Essequibo coast, a cheque was cut on the 31st December 2019 for $65M by the accounting officer.
“These funds were drawn from the 2019 budget allocations, a clear case of two illegalities; issuance of public monies without a signed contract in place; and use of 2019 budgetary allocation to commence a 2020 project.”
The Opposition official, a former Junior Minister of Finance, pointed out that Article 217(1) of the Constitution of Guyana is clear how money from the state is to be withdrawn.
“Further, the Fiscal Management and Accountability Act Cap 73:02; at Section 43, states thus:
“Except as otherwise provided in this Act or in any other law, at the end of each fiscal year, any unexpended balance of public monies issued out of the Consolidated Fund shall be returned and surrendered to the Consolidated Fund.”
He called on the police force to immediately launch an investigation into this matter.
The letter to the police was copied to the Auditor General.

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