PAC queries over-budgeting in Region 2

May 17, 2022 News

– as REO unable to explain payment to 123 additional staffers

Kaieteur News – The Regional Administration of Region Two was faced with several questions as it relates to over budgeting on Monday as the Parliamentary Public Accounts Committee (PAC) examined its expenditure on employment costs in 2018.

A hearing of the Parliamentary Public Account Committee

According to the Auditor General report, the Region’s annual estimates totalling $1.835 billion was budgeted for employment costs for a staff complement of 1,373. However, as at 31 December 2018, amounts totalling $1.835 billion were expended for a staff complement of 1,496.
The figure represented 123 staff members more than was budgeted for. When asked for an explanation on Monday, Regional Executive Officer for Region Two Susanah Saywack could not say how the payments were done.
It was noted, however, that the funds did not come from the Ministry of Finance to pay the additional staffers.
Finance Secretary, Sukrishnalall Pasha in seeking to explain how the region was able to pay these additional staff, without additional funding and possibly without approval from the Ministry of Finance, said it seems to be savings incurred from moving contract employees to the pensionable establishment.
Pasha said that, “It seems persons moved from contract to permanent establishment had a lot of savings. For this reason, more persons were recruited and they still had money. That is based on my assessment on the regions. It appears they hired more persons and were spending less because they moved people to the permanent establishment,” Pasha reasoned.
Several members of the PAC agreed that moving persons to the pensionable establishment would free up monies for other uses.
A Partnership For National Unity +Alliance For Change (APNU+AFC) Member of Parliament David Patterson said it was a logical and practical explanation, but the Regional Administration had no data to show how many persons were moved from contract to pensionable establishment in 2018, and how much of the savings was accumulated from such a move.
Nevertheless, Minister of Public Works Juan Edghill noted that while the incidence could have been an over budgeting for employment costs, there is a possibility of a plain breach of the Procurement Act, since the funds for unbudgeted employment costs should have come directly from the Ministry of Finance.
In its 2018 report, the AG’s Office had recommended that the Regional Administration ensure that its budget submission is in keeping with circularised instructions and the amount budgeted for employment costs are for staff positions that are filled.
The Public Service Commission (PSC) in a Circular dated February 7, 2017 stated Permanent Secretaries, Heads of Government and Regional Executive Officers are required to submit a list of all officers on contract/gratuity to be appointed on the pensionable establishment.
However, it was noted that the Regional Administration in Region Two only employed three persons on contracts who were all below the age of 45 and should have been employed on the fixed establishment.
The report indicated that one officer was not qualified to be appointed substantively while the other two officers were subsequently recommended to the department of the Public Service so they can be appointed through the Public Service Commission.
The Audit Office had therefore recommended that the Regional Administration take immediate steps to move these employees over to the permanent establishment.

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