Indigenous Affairs Ministry failed to recover $8.5M overpaid to contractor- AG report

Jan 16, 2021 News

The Ministry of Amerindian Affairs Building

Kaieteur News – t has been revealed in the 2019 Auditor General’s Report that the Ministry of Indigenous Peoples Affairs (now Ministry of Amerindian Affairs) failed to collect $8.597 million overpaid to a contractor for excavation, land filling, drain construction, and concrete works done at a student dormitory in Liliendaal, East Coast Demerara.
According to the report, the contract valued at $13 million was awarded to the contractor for the works and was paid in full. However, the 2018 Auditor General’s report had stated that a physical verification was conducted in April 2013 and it was reported that the contractor was overpaid $7.869 million. “The competent officer for the project requested re-measurement of the works since the contractor disputed the amount stated as overpaid,” that report outlined.
It further stated that based on the revisit and levelling exercise conducted in April 2014 and physical measurements that were taken, it was determined that the sum of money overpaid to the contractor was $8.597M, which is an increase of $728,000 from the initial $7.869 million.
Kaieteur News understands that in 2017, the Ministry successfully contacted the contractor and made him aware of his indebtedness in a letter, but in return, he served the Ministry with a letter from his legal representative denying his indebtedness. Both letters were forwarded to the Solicitor General’s Office for advice on direction and a reminder was also sent in 2018.
The 2019 report noted the previous engagements with the Ministry and the Solicitor General’s Office stating that their last correspondence was dated July 29 last year. Adding to that, at the time of reporting in November last year the Ministry had still not recovered the money overpaid to the contractor.
In the Ministry’s response, the Head of the Budget Agency gave an explanation where he/she said that the Ministry is still awaiting a response from the Solicitor General’s Office.
The Auditor General has since recommended that the Head of the Budget Agency continues to follow up on the matter with the aim of recovering the money from the contractor.
A follow up on the implementation of Prior Year Audit Recommendations (for the year of 2018) outlined that the very recommendation was given by the Auditor General and has still not been implemented hence it was suggested once more.

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