PPP/C questions new Government’s spending – Finance Minister assures of commitment to accountability — says ‘mountain being made out of a molehill’
SEVERAL questions were posed by the People’s Progressive Party/Civic (PPP/C) on spending over the last few weeks related to the independence and inauguration exercises, as well as on accounting for monies gifted to support the cleanup exercise within the vicinity of the Square of the Revolution.
Finance Minister Winston Jordan in response contends that the party is making a “mountain out of a molehill” – the proverbial exaggeration.
QUESTIONS
The PPP/C in its questions called on the subject Minister to:
1. Clarify whether all contributions received from the private sector and other donors in relation to the independence and inauguration events were deposited into the Consolidated Fund as required by law, and withdrawn from the Consolidated Fund in accordance with the laws of Guyana?
2. Clarify by what authority are private citizens known to be affiliated with his party, but holding no Government office authorised to receive donations destined for the Government of Guyana, and what arrangements are in place to ensure accountability for same?
3. Clarify whether he is aware that there are rules governing gifts and donations to Government, including the need to deposit them into and process them through the Consolidated Fund, and whether these rules are being complied with fully in the current instance?
4. Clarify at what point in time will the Guyanese people be provided with a full account of all the contributions received and how they were used
5. Clarify by what competitive or tender process were contractors selected to execute the works currently being done, naming the newspaper and date of publication of the advertisements of the tenders for the work done. In event the work is being done for free, can Mr. Jordan please clarify what special arrangements are in place to safeguard against the same contractors expecting to have their “favour” to the Government returned at some point in time in the future?
“His (the Finance Minister’s) Government has in fact been running a parallel treasury with no regard for accountability and transparency by soliciting, receiving, and spending moneys on a cleanup campaign and on an unprecedentedly lavish independence and inauguration extravaganza all outside the Consolidated Fund,” the PPP/C declared.
CLEANUP EXERCISE MONIES
On the first question, the Finance Minister told the Guyana Chronicle that private sector and other donors did indeed contribute to the cleanup exercise and the monies were not passed through Government’s accounts.
As such, he assured that an audited report will be done. “There will be an audited statement of all the donations received and how they were utilised. For the ‘in kind’ donations that were made, these will be recognised because it would be difficult to put a value to such,” he said.
Jordan added that he has been in touch with Colonel Laurie London, who was charged with putting systems in place for the cleanup and grand flag-raising ceremony at the Independence Arch site on Brickdam Street, to engage a private accountant to do the audit.
When asked if the services of the Auditor General (AG), Dr. Deodat Sharma, would be solicited, he added that the AG can be involved if he wishes to do so, but noted that given that the monies were not passed through the Consolidated Fund, this may not be the case.
RETURNING FAVOURS
The Minister named BK International, Cummings Electrical, Puran Brothers, as well as members of the diaspora as some of the parties that supported the cleanup effort.
On the question of the expectation of ‘favours being returned’, Jordan was emphatic that the letter of the law, legal provisions and guidelines, will be followed regarding public spending will be followed, regardless.
“We have to hope that we don’t have to give them anything down the road. I cannot say what is in people’s minds,” he said, “Private citizens make contributions to worthy causes.”
INDEPENDENCE BUDGETED FOR
Jordan added that monies for the 2015 independence celebrations were budgeted for in the 2014 Budget, under the Ministry of Culture.
“Last year there were budgeted funds for the next independence, so the monies were there…it was a legitimate expense,” the Minister said.
Jordan pointed out that in the absence of a national budget, spending for budget agencies is regulated.
The Dissolution Proclamation, which paved the way for elections, activated the provisions of Article 219 (1) and combined the Fiscal Management and Accountability Act. It provides that in any financial year the Government is empowered to spend one- twelfth of the Budget of the preceding year in continuing to provide the normal services of the Government of Guyana, until an Appropriation Act is passed.
After Elections, Article 219, paragraph 3 of the Constitution, will be activated to regulate expenditure, until a first budget is passed for the 11th Parliament of Guyana.
INAUGURATION ACTIVITIES
Questioned about the funding of the inauguration events, he was unable to say whether private or state funds were used.
However, Jordan stated that if public funds were utilised it would have been expended from the Ministry of Culture.
He reiterated that accountability for donations received will be a priority and all funds will be accounted for in an audited statement.
NO SYSTEM IN PLACE
On question of accounting for gifts and donations to Government, Jordan told the Guyana Chronicle that the former Administration left no system in place.
“Yes, there are rules regarding gifts and donations, but there seem to be no system in place here to account for that,” Jordan lamented.
As such, he reiterated that the private donations will be accounted for in an audited statement.
Responding to the call by the PPP/C for a date to be named, relative to the completion of the audited report, the Finance Minister noted that he could not commit to a timeframe since an accountant is still to be engaged.
All considered, Jordan stressed that the APNU+AFC Administration remains committed to transparency and accountability.
