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FM
Former Member

Nagamootoo’s office ‘misused’ Contingency Fund

 

AG 2015 Report

… used advances for tax-free bonus

Auditor General Deodat Sharma in his 2015 Report has cited the Office of Prime Minister Moses Nagamootoo for misuse of the Contingencies Fund and diverting monies drawn down from the Contingencies Fund for purposes it was not intended for.nagamootoo-211x300

Sharma in his Report stated that Nagamootoo’s Office in December 2015, requested an advance of $11 million from the Contingencies Fund and stated the reason for the advance was for the Government Information Agency (GINA) to offset a part of its debt to the Guyana National Newspapers Limited (GNNL), publisher of the Guyana Chronicle newspaper. However a portion of that sum was used for another purpose, which constitutes a breach of the financial regulations.

This is based on the fact that the payment of GINA’s debt to GNNL does not constitute an emergency but rather a routine expenditure and therefore, the Contingencies Fund should not have been used. This expense should have been budgeted for in the annual budget.

The use of the Contingencies Fund for the routine expenditure is a breach of the financial principles.

The Prime Minister, who always portrays himself as a bastion of accountability, was found wanting with the report revealing that his Office did not just misuse the Contingencies Fund, it went a step further to use the advance for purposes it was not intended.

According to Sharma’s Report, an examination of the requisite payment vouchers and other supporting documents revealed GINA paid GNNL the sum of $9.450 million, whilst the remaining $1.550 million was used to pay employees of GINA non-taxable bonus for 2015.

This constitutes a further breach of principles governing the use of public funds.

It is important to note that while in opposition, Nagamootoo was at the forefront of a campaign against the GINA, including the reduction of that entity’s annual budget to $1 in 2013 and 2014.

Auditor General Deodat Sharma

Sharma’s Report stated that during 2015, the APNU/AFC Government abused the Contingencies Fund through a total of 11 advances for which the requisite laws did not cater for.

He said that the advances abused the Contingencies Fund by an amount in excess of $600 million with the Guyana Defence Force (GDF) being the biggest recipient of almost $300 million.

Other breaches

Sharma’s Report also highlighted other breaches by Nagamootoo’s Office which include flouting of the Stores Regulation.

Sharma observed that the Office’s inventory was not being kept up-to-date and as such it was difficult for the auditors to verify the accuracy of stock on hand.

Sharma urged that the Office ensure that it adheres to the Stores Regulation.

Meanwhile the PM’s Office was also cited for a breach of a purchase agreement involving vehicles.

The AG Report stated that under the Office’s Capital Expenditure, a sum of $19.405 million was used to purchase a $5.3 million Toyota Corolla car, a motorcycle at a cost of $203,000 and a Toyota Land Cruiser valued at $13.8 million.

Sharma said while the Office would have received the car and motorcycle, the issue was with the Land Cruiser.

He explained in his Report that the procurement of the new Toyota Land Cruiser was awarded to the lone bidder and according to the quotation, 50 per cent of the cost must be paid on “Firm Order”, while the remaining 50 per cent is to be paid on delivery.

“However, the full amount was paid to the supplier on 4 January 2016 via cheques numbered 05-612925 and 05-612926. Notwithstanding this, the vehicle was delivered in September 2016,” Sharma observed in his Report.

He has since recommended that the Office ensure there is “full compliance” with purchase agreements.

Similar instances are replicated across ministries of the government during 2015.

The Auditor General complained in his Report that despite his recommendations for measures to be implemented to tackle issues of this nature, there continues to be very little action by officials.

“The Audit Office continues to view the lack of action towards the implementation of prior recommendations with serious concerns and suggest stringent action be taken to address these findings, especially those related to overpayments on construction works, lack of weak internal controls, including poor record keeping and breaches of relevant Legislation,” he stated.

Replies sorted oldest to newest

Look like exchange instead of change, this is what the people on the ground in Guyana are saying. Now only if the gullible on GNI can come to this same conclusion, you know who you are. 

FM

According to the unsourced report ASJ posted above, the Office of the Prime Minister misused the Contingencies Fund and the Stores Regulations. Reading through the numbers cited, I must say that this is not good practice and the Prime Minister owes the nation an explanation.  

FM

Nagamootoo is laughing all the way to the bank while enjoying his salary increase, his newly renovated million dollars residence, his drivers and SUVS, overseas trips, and that hefty pension fund which makes Jagdeo's look like small change.

Y'all left the man alone.  Izzz he time now.  And all his supporters should shut up and go sit down and be proud that the man is enjoying the good life because y'all thought he was God's gift to mankind.

Bibi Haniffa
Last edited by Bibi Haniffa
Drugb posted:

I told these folks before that these politicians in the afc/pnc gave them koolaid and once in office they will revert to their thiefman behavior prior to becoming saints.

Thankfully the koolaid wasn't laced with cyanide à la Jim Jones. 

FM
Django posted:

Any money pocketed???

Look at the amount pocketed:

"According to Sharma’s Report, an examination of the requisite payment vouchers and other supporting documents revealed GINA paid GNNL the sum of $9.450 million, whilst the remaining $1.550 million was used to pay employees of GINA non-taxable bonus for 2015."

FM
Gilbakka posted:

According to the unsourced report ASJ posted above, the Office of the Prime Minister misused the Contingencies Fund and the Stores Regulations. Reading through the numbers cited, I must say that this is not good practice and the Prime Minister owes the nation an explanation.  

This was in 2015. You see, as soon as they took over, they stretched their hand for the milk and honey. Wonder how they got $11 mil when the PPP stole all the money and the PNC declared no money was left?
We knew who they were and they proved it as soon as they got installed.

FM
Gilbakka posted:
Drugb posted:

I told these folks before that these politicians in the afc/pnc gave them koolaid and once in office they will revert to their thiefman behavior prior to becoming saints.

Thankfully the koolaid wasn't laced with cyanide à la Jim Jones. 

Are you sure about that? One notable koolaid drinker already fell recently. 

FM
Drugb posted:
Gilbakka posted:
Drugb posted:

I told these folks before that these politicians in the afc/pnc gave them koolaid and once in office they will revert to their thiefman behavior prior to becoming saints.

Thankfully the koolaid wasn't laced with cyanide à la Jim Jones. 

Are you sure about that? One notable koolaid drinker already fell recently. 

Probably due to delayed action of toxic PPP koolaid. If so, that's the thanks he got for recruiting Muslims for the PPP.

FM
Gilbakka posted:
Drugb posted:
Gilbakka posted:
Drugb posted:

I told these folks before that these politicians in the afc/pnc gave them koolaid and once in office they will revert to their thiefman behavior prior to becoming saints.

Thankfully the koolaid wasn't laced with cyanide à la Jim Jones. 

Are you sure about that? One notable koolaid drinker already fell recently. 

Probably due to delayed action of toxic PPP koolaid. If so, that's the thanks he got for recruiting Muslims for the PPP.

This is doubtful, the man has not been PPP for at least 10 years.

FM
Drugb posted:

I told these folks before that these politicians in the afc/pnc gave them koolaid and once in office they will revert to their thiefman behavior prior to becoming saints.

Jalil must be turning in his grave since this confirmation of the crookinshness of Neemakharam and Crabdawg Moses.

Jalil, Gil, Mitwah and others were promoting Con Man Moses greater that the real Moses from the Holy Bible.

They (GNI's AFC crowd) are now quite and still fail to condemn this crookishness of Crabdawg and Conman Moses.

Let them tek it good and prappa for drinking Conman Moses Cool Aid. More is yet to come.

FM
Last edited by Former Member

Crook:

Quote to the article.

"He explained in his Report that the procurement of the new Toyota Land Cruiser was awarded to the lone bidder and according to the quotation, 50 per cent of the cost must be paid on “Firm Order”, while the remaining 50 per cent is to be paid on delivery.

However, the full amount was paid to the supplier on 4 January 2016 via cheques numbered 05-612925 and 05-612926. Notwithstanding this, the vehicle was delivered in September 2016,” Sharma observed in his Report.

FM
Last edited by Former Member
Bibi Haniffa posted:

Nagamootoo is laughing all the way to the bank while enjoying his salary increase, his newly renovated million dollars residence, his drivers and SUVS, overseas trips, and that hefty pension fund which makes Jagdeo's look like small change.

Y'all left the man alone.  Izzz he time now.  And all his supporters should shut up and go sit down and be proud that the man is enjoying the good life because y'all thought he was God's gift to mankind.

Bibi is 1000 Percent accurate.

FM

His comments are disrespectful to the Auditor-General


lettersDear Editor;
Let me first indicate that I shall not attempt any of those reckless generalisations about the purpose and intent of the Contingency Funds which have now been popularised by a very misinformed Minister of Finance, Mr. Winston Jordan. As he unshackles his comments from the more measured versions the nation was accustomed to, under Mr. Carl Greenidge (the last PNC Minister of Finance), Jordan continues to put the PNC chances of winning the 2020 elections at great risk. His open acts of incompetence continue to actively contribute to the mal-administration of the economy. But on top of such incompetence, we are now seeing public acts of intimidation against anyone who questions his strategically bankrupt public actions. The latest victim is the Office of the Auditor General.
His comments which smack of darker antipathies against the functionalities of the Office of the Auditor General, did not escape my notice. If we are to follow his logic, then the innocent taxpayers who are toiling to fill the Treasury are at the mercy of the GREAT MINISTER who claims he has sole rights to do what he wants with the people’s money because of a clause in Section 41 of the Fiscal Management and Accountability Act, Act 20 of 2003 (FMA). But what the Minister is not telling the people is that those “sole rights” are not automatically bequeathed to him by some monarchical edicts, unless all of a sudden we have a King in Guyana since May 2015. Those rights have to be earned after following due process.
The Office of the Auditor General quite correctly pointed out that the Minister has not followed due process on the expenditure totalling a hefty sum of G$604 million and thus he violated the spirit and intent of the law. But only a financial inept person and an impetuous pugilist will not recognise such violations.
That same FMA clearly establishes the criteria for tapping the Contingency Funds and it is as basic as this – the expenses charged to the Contingency Funds must be urgent, unavoidable and unforeseen and only if injury to the public interest is a direct consequence, can we proceed to make those expenses. But all four criteria must be met. On G$604 million in expenses, the Minister has failed to meet all four criteria.
The Minister has violated the spirit of the law and the Office of the Auditor General is correct to write him up. The Minister’s action in 2015 (which continues in 2016), is nothing but reckless financial abuse. Therefore, this act of bullying the Auditor General is uncalled for and by right President Granger has to step in, unless he uninterested in arresting these open acts of public bullying.
At all times the Government of Guyana must be seen to be giving all Constitutional Offices, the necessary latitude to do their job. I am calling upon the British diplomats, who have a history of good governance, in particular to pay keen attention to what is going on in Guyana. The members of staff at the Audit Office are trained people who have the collective skill-set to make informed declarations in a national report. They have a job to do, so why are they not being allowed to do their jobs?
The Minister has no right to abrogate due process. Therefore, there is no need for such ignorance from the Minister because he lacks training in the science of financial accountability. Whatever was published in the 2015 Auditor General Report was put there after consulting the Accountant General and other technicians in the Ministry of Finance. Therefore this was a collaborative and collective effort; not a personal attack on the Minister.
Rather the Minister will do very well to focus on his job and save the Guyanese economy from “flat-lining”. But it is clear he has time for everything else but doing his job. This is a clear case of this Minister drawing salary under questionable circumstances since every day that goes by, exposes the fact that the solution to Guyana’s economic problems is beyond the competence of this Minister.
I have reviewed the period under Jordan stewardship in Main Street and I cannot find one progressive policy that will directly create new jobs, new economic growth and will aid in the economic transformation of Guyana. So after 25% of the term has evaporated, his record of performance makes him one of the worst performers in Main Street; if not the worst.
Because with such a parlous performance from Jordan, I would not be shocked if even his ardent supporters in the PNC will, today, not pay even half of a penny for him and his dictatorial attitudes. Jordan’s actions today will cost President Granger dearly in 2020.
We might not have to wait on 2020, since this tragic performance of Jordan has already started to infect the output from the Minister of the Presidency and the Office of President Granger directly. President Granger has to bite the bullet and do the right thing and appoint the best finance brain in his cabinet to the post – Carl Barrington Greenidge.
I humbly submit to His Excellency the President and his top advisor the Senior Minister of State Mr. Joseph Harmon this suggestion; it is time to bury the hatchet with Greenidge and better utilise his competence, experience and skill to turn around the economy. Keeping him out of Main Street continues to do great damage to the nation.
Hoyte trusted Greenidge with the biggest project of that decade – turning around the economy and he successfully did it. It was under Greenidge that Guyana moved from negative 5% growth rate in 1989 to positive 8% by the time he delivered the Office of the Minister of Finance to Dr. Asgar Ally (PPP). I am convinced Carl Barrington Greenidge can do it again. It is time for the real talent in the PNC to be given a chance to showcase that party and it is time for the “kwaks” to be given their marching orders.
The resources in the Treasury do not belong to Mama Jordan or Papa Jordan, they belong to the people of Guyana and these acts of continued financial abuse and disrespect for the spirit and intent of the laws that governs financial accountability in the land is indefensible and must be rejected today, tomorrow and in 2020.
Jai (Harry) Lal

Georgie

  "That same FMA clearly establishes the criteria for tapping the Contingency Funds and it is as basic as this – the expenses charged to the Contingency Funds must be urgent, unavoidable and unforeseen and only if injury to the public interest is a direct consequence, can we proceed to make those expenses. But all four criteria must be met. On G$604 million in expenses, the Minister has failed to meet all four criteria.
The Minister has violated the spirit of the law and the Office of the Auditor General is correct to write him up. The Minister’s action in 2015 (which continues in 2016), is nothing but reckless financial abuse. Therefore, this act of bullying the Auditor General is uncalled for and by right President Granger has to step in, unless he uninterested in arresting these open acts of public bullying."

 

Source: http://www.kaieteurnewsonline....the-auditor-general/

Georgie

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