Cabinet Secretary Dr Roger Luncheon yesterday dismissed the notion of a conflict of interest in relation to the appointment of Finance Minister Dr Ashni Singh’s wife to the post of Audit Director at the Audit Office, saying that the entity does not fall under, neither does it report to the Ministry of Finance.
Speaking at his post Cabinet press briefing at the Office of the President, Dr Luncheon said that regulations made under the Audit Act speak to the evolving role of the Public Accounts Committee (PAC) in its governance relationship to the Audit Office, hence negating the conflict of interest argument.
Luncheon said the opposition is misrepresenting the facts with regard to the appointment of Gitanjali Singh, the wife of the minister of finance to the position of Audit Director; a post she had been acting in for a number of years. “Pandering to the conflict of interest issue misrepresents the entire matter,” he said.
He said the decision the PAC made in its meeting of June 25 reflects the views and intent of the PAC going back to the last Parliament. “However, Cabinet could not be unmindful or unaware of the continued interest that exists in some centres in highlighting this issue,” he said.
Luncheon said it was the same opposition-chaired PAC that was silent on the very issue during the life of the Ninth Parliament. “It is definitely not a new appointment. She [Gitanjali Singh] was acting for a long time and no objection was made during the Ninth Parliament,” he said.
Luncheon urged that persons recognise the effects of constitutional and statutory changes as regards the autonomy of the Audit Office and by extension the role of the PAC as evolving when it comes to governance issues of the Audit Office.
According to Transparency International (Guyana) Inc (TIGI), Singh’s appointment gives rise to “a serious conflict of interest” in the eyes of the accounting profession and the public and it has urged President Donald Ramotar, the Auditor General and the PAC to remedy the situation.
TIGI said that as a result of this appointment, a critical role in the oversight of the financial statements of the country has been entrusted to the wife of the minister responsible for preparing them. It said that the retention of Mrs Singh as Audit Director is likely to adversely affect the credibility of the Audit Office and will undermine public confidence in such an important independent office created by the Constitution.
TIGI pointed out that the auditing process by definition requires insulation from the subject of the audit. TIGI argued that the appointment completely ignored the need for insulation and this is likely to “undermine the effective performance and operation” of the Auditor General’s Office.
Further, both the Minister of Finance and his wife, it said, are bound by standards of professional conduct laid down by the Association of Chartered Certified Accountants (UK) and the Institute of Chartered Accountants of Guyana, which have rules relating to conflict of interest.
As a result, TIGI called on President Ramotar—who appoints the Auditor General—Sharma, and the PAC, to remedy this situation in order to ensure “good governance, greater transparency and enhanced accountability.”
The Alliance for Change (AFC) said that it will be challenging the appointment of Mrs Singh and the other ten persons who had been appointed by the PAC during the absence of an AFC member from the meeting which allowed the PPP/C to use its majority to effect the vote.
