$465M paid to contractors by M&CC still to be verified – PAC hears
News
Kaieteur News – According to the 2017 report, the Audit Office said it was unable to verify the accuracy, validity, and completeness of $475.6 million paid to contractors of the Georgetown Mayor and City Council.
The issue was highlighted on Monday, as the Parliamentary Public Accounts Committee (PAC) continued its examination of the 2017 and 2018 Audit reports.
Permanent Secretary of the Local Government Ministry, Prema Roopnarine told the committee that the expenses were incurred by City Hall but the council was unable to provide a breakdown of how the figures were derived.
Roopnarine explained, “The City Treasurer and Town Clerk managed to find some contracts and copies relating to this. They have shared those with the auditors. We’re making some headway.”
“In conclusion, Ministry of Communities paid $475 million based on a Cabinet decision that clearly outlined who to pay…Up until now, we’re having severe difficulties getting the documents to justify the breakdown of $475 million,” she added.
The audit records in 2018, $297.7 million was transferred to municipalities but it was highlighted that these local organs continue to breach the Municipal and District Council Act, in relation to submitting timely financial statements.
The audit record noted that municipalities continued to breach the Municipal and District Councils Act, Chapter 28:01 of the Laws of Guyana, which stipulated that “…all accounts of Municipal and District Councils be made up yearly to the end of the financial year by the Treasurer of the Council and shall be so made up not later than four months after the end of such year to which they relate and for those accounts to be audited by the Auditor as soon as practicable.”
The head of the agency, at the time, had explained that in accordance with the Municipal and District Council Act Chapter 28:01, it is the responsibility of the Municipal Treasurers to submit annual Financial Statements to the Audit Office.
As such, the Audit Office recommended that the Municipal Treasurers submit all outstanding Financial Statements to the Audit Office.
In addition to this, the permanent secretary told the PAC on Monday that letters were dispatched asking Councils to submit timely financial statements. She said they are implementing a comprehensive training programme, to build capacity in making these commitments.
Roopchand told the PAC, “The Ministry of Local Government has written several letters to all municipalities encouraging them to bring their accounts up to date and submit for audit.”
She added, “We have also noted that there is an issue of capacity with training. We’re implementing a comprehensive training programme across the municipalities to help them in whatever areas they need to get these accounts up to date.”
Former Permanent Secretary, Emil McGarrell supported the need for financial regulation.
The former Permanent Secretary outlined that, “It is indeed a challenge in relation to financial management at the municipalities and NDCs, in particular in relation to transfers from Central Government. Without financial regulation, as to how they ought to conduct themselves, they are free to conduct themselves in financial matters in accordance to Chapter 28:01 and Chapter 28:02…”
