Prime Minister Moses Nagamootoo

Salarygate scandal

…treasury could only afford Ministers’ salary increases 

Crumbling under pressure amid the intense public outrage over the astronomical salary increases Government has given itself and the cries of betrayal and dishonesty, Prime Minister Moses Nagamootoo sought to assure public servants that they will be suitably remunerated. However, this will be “just sometime down the line”, the Prime Minister said, insisting that the State could not have afforded to deal with public servants’ increases at this point in time.

“(The salary increase) was an adjustment for a handful of persons that the State could have afforded at this point in time rather than engaging the larger issue of the entire public service that would involve another type of calculation and affordability in terms of the quantum,” Nagamootoo stated when drilled by media operatives on the issue.

 “I know that down the line, the public servants would be remunerated,” he added.

As the second item on the 100-day plan, the A Partnership for National Unity/Alliance For Change (APNU/AFC) coalition had promised to “significantly” increase the salaries of Government workers including nurses, teachers, security personnel and civil servants. However, in Budget 2015, the new Administration offered a paltry salary increase ranging from 5 to 10 per cent as opposed to the 20 per cent it had promised during the campaign trail.

Against that background, when reports first emanated that Government was considering an enormous pay hike for itself, the public immediately retorted with a wave of anger. Subsequently, Government in the person of Minister of Governance, Raphael Trotman sought to assure Guyanese that no such increases were underway for the near future. However, soon thereafter in the Official Gazette, the Government quietly gave itself a 50 per cent increase.

This chain of events have undoubtedly angered and frustrated the Guyanese populace, particularly the coalition’s supporters, with many of them expressing their rage and annoyance through social media, online blogs, letters to the editors, staging protests, among other channels.

Prominent columnists including David Hinds, Christopher Ram, Freddie Kissoon and former Speaker of the National Assembly Ralph Ramkarran have heavily criticised the Government for its decision.

Meanwhile, in further attempting to conciliate the escalating hue and cry over the exorbitant salary increases, Nagamootoo promised that public servants would be remunerated based on the reports coming out of the various Commissions of Inquiry, which, he said, could be as early as this year.

“We would look at the question of affordability, even this year, if it would be possible to address some of the concerns of the public service, particularly the public servants,” he said, noting that Government would be guided by the reports.

Guyana Times understands, however, that several of the reports including the reports from the Commission of Inquiry, have recommended that there be no salary increases for workers.

Meanwhile, even as the public is coming to terms with the large increase Government has given itself, the Administration have also taken a decision to ‘enhance’ the salaries of the recently handpicked new Regional Executive Officers (REOs).

The Government took the decision to increase the pay of its REOs despite public outcry over its ongoing extravagance and wastage of taxpayers’ monies on hefty salary increases for its Ministers and other politically connected individuals of the ruling coalition.

Under the new remuneration package, the REOs will now receive a non-taxable salary of $300,000; a non-taxable duty allowance of $70,000, and $10,000 as cellular phone allowance. They will also receive an additional $300,000 for payments of electricity bills, security service, and landline telephone service. In addition, the REOs will receive an annual vacation allowance of the equivalent of one month’s non-taxable earnings, which in this case is $300,000. Their contracts will be for a three-year period with 42 days in annual vacation.

As if that is not enough to burden the public coffers, the REOs will also benefit from a driver, an assigned Government vehicle, and yet a duty-free vehicle. The gas to fuel these vehicles alone will amount to over $1 million annually.

Increases

In the Official Gazette of September 25, it was revealed that a Cabinet Minister would be given a hefty sum of $10,439,124 annually. It is further detailed that annually the Prime Minister would be benefiting from in excess of $20 million, while the other Vice Presidents would each receive $11,135,064.

The three Vice Presidents – Sydney Allicock, Carl Greenidge, and Khemraj Ramjattan will earn monthly some $1.13 million, double the $579,000 which they would have earned as Ministers. In addition, the vacation and other benefits are also $500,000.

A Junior Minister is paid $8,346,492 per annum.

Meanwhile, the Leader of the Opposition has been offered $10,439, 124 on an annual basis, but Bharrat Jagdeo has already indicated he will not be accepting this salary.

Amid massive public outcry, President David Granger sought to defend and justify the decision for the hefty salary increases. According to the Head of State, the salary increases will eventually translate to good governance.

State Minister Joseph Harmon had stated that the salary increase decision was made to ensure Ministers and Government officials are paid an attractive salary so as to discourage them from being corrupt.