Teixeira queries absence of records for $30M IDB loan

Feb 18, 2022 News

Kaieteur News – Government Chief Whip and Public Accounts Committee (PAC) member, Gail Teixeira has queried the absence of records in the Auditor General’s 2018 report for a $30M loan disbursed by the Inter-American Development Bank.
The sum was part of a series of disbursement by the IDB to the former A Partnership for National Unity and Alliance For Change (APNU+AFC) government to facilitate a startup oil and gas development programme in 2018. During her remarks, Teixeira noted that while the audit report mentions that the entire amount was disbursed, there was no record of an audit being done.
Though the issue was later clarified by Permanent Secretary (PS) of the Ministry of Natural Resources, Joslyn McKenzie, the Government Chief Whip was adamant that absence of audit records for the disbursement is a matter for concern. The PAC member therefore queried the reason for the lack of a paper trail.
“I understand that the entire amount was expended. The Auditor General mentions that the entire sum was disbursed by the IDB but when such payments happen you don’t audit the payments made by the IDB or is it done separately as a foreign- funded projected? Is that what happens?” Teixeira asked Auditor General, (AG) Deodat Sharma.
Sharma in an attempt to explain said that the audits are done separately for the IDB. He noted that his office would audit the disbursement since it was made directly through the IDB not the Ministry of Finance.
However, Teixeira noted that this does not clarify how the AG is able to have paper trail or records of the transactions for an audit. “How do we account for the monies that is released?” she questioned. The AG then specified that ‘in scenarios like these,’ there is separate opinion report that is issued to IDB concerning the loan or the grant.
He noted too that for records the Audit Office will rely on documents garnered through the capital receipt, capital expenditure transaction process. PS of the Ministry of Natural Resources, Joslyn McKenzie added some clarity to the explanation. Mc Kenzie explained that the $30 million disbursement was made as part of a startup exercise to the oil and gas development project. He explained that it was done at a period when it could not be included in the budget and for this reason the AG could not audit the project through the Ministry. According to the PS, the only way of auditing this type of transaction is through the records garnered by the agencies executing the projects.
The Natural Resources Ministry representative noted that the formal request made for amounts by those agencies would provide a record for the audits. In response to the explanation given, acting Chair of the PAC, Ganesh Mahipaul, noted that the Committee therefore expects that the AG would be accurate with his records. In 2018, the APNU+AFC government was granted the sum as part of a US $11.64 million policy-based loan from the IDB. The project was designed to support the strengthening and the sustainability of the energy sector in Guyana by contributing to the institutional development of oil and gas governance and the development of cleaner energy sources for electricity generation. The specific objectives of the loan programme were first, to develop a management and planning framework for Guyana’s oil and gas sector and second, to contribute towards the development of a policy framework so that Guyana may diversify its electricity generation matrix using cleaner or renewable sources.

Latest News

Teixeira queries absence of records for $30M IDB loan

Related

Similar Articles

The Glenn Lall Show | November, 6th, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

$1.5M up for grabs at K&S National Futsal Championship

Big Names Ready for Group 4 Showdown at ENET...

West Indies hammer England in series decider

Guyana Amazon Warriors confirm squad for 2024...

Excitement brews ahead of Hamilton Green’s KO...

SAMUEL FOO wins SEN School’s Chess Competition

Features/Columnists

A broad-based movement for the people’s voice on oil

Rising Gun Crimes in the Caribbean: Urgent Action required by all

That ever-present ‘they’

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

Teixeira queries absence of records for $30M IDB loan

Share this:

Related

Similar Articles

The Glenn Lall Show | November, 6th, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]