Norton urges Procurement Commission show some fight against corruption

Feb 10, 2023 News

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Kaieteur News – With $388 billion approved in this year budget for capital expenditure, Leader of the Opposition, Aubrey Norton on Thursday said that the money which mostly covers infrastructural projects must be spent with strict financial oversight so as to minimise corruption and mismanagement of the funds.

Norton made the call during his weekly press conference yesterday where he stated that this year the government has produced a budget without measures to address poverty, the high cost of living, high inflation and the high level of unemployment. The focus of the budget he noted however is on infrastructural development which is needed, but it is being done in a way to facilitate widespread corruption.

In light of the foregoing, Norton said that there is need for a strict financial oversight to minimise fraud and waste of the funds and a public procurement system that ensures equity and rewards a wider range of citizens in the society.

“For 2023, the government has allocated G$388 billion for capital expenditure. Most of this money will be spent on infrastructure projects, such as roads and public buildings. Guyanese should be aware that almost all of the G$388 billion will be filtered through the public procurement system – in other words, through contracts to be awarded by government ministries, state agencies, and regional democratic councils. Against this background, there is a need for the government to put in place measures (a) to minimize corruption and financial mismanagement, and (b) to ensure equitable allocation of contracts across groups in the society,” he stated.

Calling for measures to be put in place, he explained yesterday that the Coalition when they were in government, delivered quality infrastructure at a much lower cost than the present PPP/C regime.  He said, “The revelation by Member of Parliament David Patterson, during his budget presentation indicated that PPP road contracts are costing taxpayers $40 million per km more than under the Coalition government.”

The Opposition Leader mentioned that this highlights the crisis of corruption and financial mismanagement in the public procurement system at present and this should not be left unchecked since the crisis will worsen.

He noted that with this crisis the Guyanese people will get fewer and fewer returns relative to the money invested in capital projects. According to Norton, in public spending, citizens must always demand cost minimization, efficiency (or output maximization), and effectiveness (or full attainment of the intended results).

Highlighting that there must be greater oversight and accountability, Norton said too that “the Public Procurement Commission must get off its rump and fulfill its mandate.” He explained that the Guyana Constitution (Article 212 AA) empowers this Commission to “monitor the performance of procurement bodies with respect to adherence to regulations and efficiency in procuring goods and services and execution of works” and “to investigate cases of irregularity and mismanagement, and propose remedial action.”

Therefore, as an independent constitutional body, the Commission must not allow the government to thwart the fulfillment of its responsibility to the people. It must urgently get its act together, Norton added.

Additionally he stated, the Office of the Auditor General must conduct value-for-money audits for large projects—not only after construction, but also during construction.

“The APNU+AFC during the budget debate 2023 advocated for a People-Centered Development Strategy in which the resources of our country should benefit the people. Unfortunately, this is not the case with this government since no action is being taken to ensure the entire G$388B capital budget for 2023 benefits the people of Guyana,” Norton expressed.

As it relates to measures to ensure equitable allocation of contracts, Norton mentioned that the Public Procurement Commission must work towards building a contract award system that, while remaining fair and competitive, can at the same time include special measures to correct previous discrimination and injustices by opening the door for wider participation from under-represented groups. In this way, the distribution of the country’s economic wealth can promote social and economic justice and inclusion across ethnic, religious, gender, political, and social lines, he briefed.

“The stark imbalance in the award of government contracts must now be addressed to ensure a wider cross-section of Guyanese individuals and businesses can benefit as contractors.  There is no denying the obvious fact that only a narrow section of the population benefits overwhelmingly from contract awards. This unacceptable situation has been allowed to continue unrestricted for too long and has become self-perpetuating. These acts of political and ethnic discrimination in the awarding of contracts are unacceptable,” the Opposition Leader related on Thursday.

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• Aubrey Norton, corruption, Leader of the Opposition, poverty, Procurement Commission

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