Harbour Bridge fails to return unspent $446M to Consolidated Fund - AG Report

Harbour Bridge fails to return unspent $446M to Consolidated Fund – AG Report

Nov 11, 2022 News

Kaieteur News – The Auditor General (AG) in his 2021 Report has highlighted that Demerara Harbour Bridge Corporation (DHBC) which falls under the Ministry of Public Works, has failed to refund $446 million to the consolidated fund in keeping with Section 43 of the Fiscal Management and Accountability Act 2003 (FMAA), which stipulates that all unspent balances must be returned to the Government coffers at the end of the fiscal year.

According to the Report, the sum of $890 million was initially budgeted to the Ministry for the rehabilitation of pontoons and retractor spans. A supplementary provision in the sum of $623,209,000 was later approved by the National Assembly, bringing the total funds available to $1.513 billion for the Demerara Harbour Bridge.

The AG report noted that according to the Appropriation Account, the entire sum of $1.513 billion was expended. However, an examination of the Ministry’s records revealed that the sum of $1.028 billion was released to the Demerara Harbour Bridge, which means that the Ministry kept $485 million of the total $1.513 billion.

The Report stated that from the $1.028 billion that was released to the DHB, only $581,883,000 was expended, leaving $446 million from the $1.028 billion unspent.

The Audit Office found that the unspent amount which is $446 million, was kept by the DHB, instead of being refunded to the Consolidated Fund which is in keeping with Section 43 of the Fiscal Management and Accountability Act 2003.

The Audit Office listed that the $581,883,000 was expended on the rehabilitation of 20 pontoons which cost $221,675,000, rehabilitation of retractor span which cost $188,059,000, bank charges which amount to $164,453,000, withholding tax which amount to $7,686,000, and cheque books which amount to $10,000.

Further, according to the Auditor General, as of December 31, 2021, the sum of $485 million that was remaining from the $1.513 billion that was given to the Ministry for the Demerara Harbor Bridge was retained by the Ministry, instead of being refunded to the Consolidated Fund, contrary to Section 43 of the FMA Act. As a result, the Appropriation Account of the Ministry was overstated by $485 million, the AG explained.

The $485 million which the Ministry did not refund to the Consolidated Fund, according to the AG Report, who made checks on May 30 this year, revealed that the money was paid to the Demerara Harbour Bridge. Due to the findings, the AG highlighted that the agency is subject to a separate financial reporting and audit. The Public Works Ministry, according to the Report, responded that it acknowledged the observations made by the Audit Office.

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