$133M worth of cheques found at Region One RDC without supporting documentation during COVID - PAC hears

$133M worth of cheques found at Region One RDC without supporting documentation during COVID – PAC hears

Jul 24, 2024 News

(2nd left): REO Region One, Sewchand responds to questions about the missing documents

Kaieteur News – The absence of adequate staffing due to the COVID-19 pandemic may have resulted in 333 cheques being placed in a safe at the Regional Democratic Council (RDC) in Region One, Barima-Waini with no supporting documents. The 333 cheques amounted to $133.9 million.

This was revealed at the Public Accounts Committee (PAC) on Monday during a review of the Region’s spending practices for the years 2019- 2020.

The questions were raised by Minister of Public Works and PAC member, Juan Edghill, who sought clarity on the Audit Office’s investigation into the discovery of the 333 cheques that were written without any paperwork.

He noted that the cheques missing payment vouchers, and other important documents were found when the Audit Office visited the Region in January 2020 – some two months before the General and Regional Elections.

“The cheques are cut in people names but how did we get those names? We don’t have vouchers, we don’t have requisition; how did we get those names tell us about the system. Help us to understand what happened?” Edghill enquired.

In response, the Regional Executive Officer (REO) for Region One, Sewchand (only name) said “I can’t say what happened then but I can say now that no cheques will be issued without a voucher and the necessary supporting document…”

Sewchand however disclosed that most of the cheques which totaled $133.9 million were cashed and paid out.

He said, “Only 11 cheques were refunded to Consolidated Fund and the balance of the cheques was already in the final stages so they were processed and paid out.”

Edghill pressed the official further on the issue of the missing documentation, and the reason why the documents were missing in the first place, but Audit Director, Gitanjali Singh disclosed that the documentation for the cheques were subsequently located in the following year (2021).

As a result, PAC member Ganesh Mahipaul explained that while Edghill’s concerns may be legitimate, there were certain elements that must be taken in consideration.

“For instance, the Regional office may have been at the time operating with just essential staff as a result of the COVID-19 pandemic. The year, 2020 was also an election year when we had the changing of the guard and so forth… So this may have contributed to the documents being misplaced… If the documents are missing at the level of the Regional Office, it usually can be verified at the Ministry of Finance… cheques are processed with documentation,” Mahipaul said.

Meanwhile, the Audit Director explained that while the previous Regional Executive Officer did respond at the time the audit was conducted; satisfactory answers and the missing documents were not provided at the time. She noted that it wasn’t until the next year when they visited the Region again, that documentation was found.

The Audit Director disclosed further that her office verified that some of the cheques had been paid over and others returned to the Consolidated Fund, in this subsequent visit.

Singh revealed, “In 2021, the Audit Office went into the region. And when they went into the Region, they found all the documentation to satisfy these 333 cheques. I’d have to say we found the cheques were paid. They weren’t in the safe anymore.”

She continued, “In terms of all the documentation satisfying the requirements, I wouldn’t be able to say at this time. To pay a cheque, you would have had to have the voucher for it to be signed. We would not have gone back and done 100 percent verification, on a prior year, if we’re doing the current year.”

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cheques, COVID, documentation, RDC, Region One

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