Discrepancies flagged by the Auditor General’s Office in its 2011 audit of Region Four’s financial records revealed that hundreds of thousands of dollars in fuel and lubricants were utilised by vehicles which were not registered to the region and its authorities were slammed for their failure to investigate the situation.
“Clearly there is fraud involved here,” said PPP/C MP Gail Teixeira, during yesterday’s Public Accounts Committee (PAC) meeting. She said the fact that documents had been tampered with indicated a conspiracy by those involved to embezzle. She was responding to Region Four’s Regional Executive Officer (REO) Deolall Rooplall, who said that not only were several documents missing, but others had been forged.
According to the Auditor General’s report, “fuel and lubricants valued at $733,076 were uplifted for three vehicles that were not owned by the region.”
Rooplall explained that the previous REO had instituted a system where vehicles registered to the region would be able to receive fuel from GuyOil, whom it was in contract with, whenever there was need to do such. He said payments were made to the company in advance to facilitate this process.
However on scrutinising the process, it was discovered that two of the vehicles which received fuel paid for by the region were not registered to the region, while another was owned by a private individual, who said he had nothing to do with the region.
The three vehicles each received fuel from GuyOil on December 2, 8, and 30 2011, and on each occasion, the serving station was the Kitty Service Station.
Considering this information, PPP/C MP Bibi Shadick said it was quite possible that the perpetrators of the fraud were aware of the amount of money lodged with GuyOil, and sought to use it up.
When asked why the region had not formulated a system to prevent such occurrences, Rooplall said that in order for any vehicle to uplift fuel, an authorising document containing the signatures of two of its executive members would have had to me produced. It was found that on each occasion that fuel was illegally uplifted, the signatures of these individuals had been produced.
Rooplall gave the names of the signatories as Ashford Amikar and Deoram Ramdas. He said that when confronted Amikar and Ramdas both denied having signed the approvals for the fuel, and maintained that their signatures were likely forged.
The issue was later reported to the police, who were supplied with the alleged forged signatures, as well as samples the men’s verified signatures for comparisons to be done. Rooplall said the information was provided to the police since June 2011, and they were still awaiting word on the results.
Shadick told Rooplall that the lax posture adopted by him and the RDC was unacceptable. She said since it was in the best interest of the RDC for the matter to be resolved, regular checks should be made with the police to ascertain the progress of their investigations. She said it was not enough for the RDC to simply sit and wait until the police called, especially since the issue was reported almost two years ago.
Shadick also suggested that the RDC conduct its own investigation into the matter. She said there must be something more that could be done to determine how and by whom the signatures were forged.
Former PAC Chairman and APNU MP Volda Lawrence, who also seemed convinced that more could be done, asked Rooplall what further steps, if any had been taken.
Rooplall replied that after the two persons denied having signed the document, there was not much else that could be done; especially since a document which was critical to the scrutiny process went missing.
PAC Chairman and APNU MP Carl Greenidge said the missing document was not sufficient justification for the agency’s treatment of the matter, and certainly does not negate its responsibility to carry out an internal investigation. It was also suggested that GuyOil be written to, requesting it carry out its own investigation. The rationale for the suggestion is that the company’s personal business procedures and records may avail some information which would answer the question of how the fraud was conducted, and possibly, by whom.
Financial Secretary (FS) Neermal Rekha mentioned that resolving the matter should not be as hard as was suggested by the REO, since a white slip of paper was usually issued by the gas station after every transaction. Rekha said some of the documents had been submitted for audit devoid of the white paper, which officials from GuyOil stapled to the document. This, he said, raised serious concerns.
The FS also bemoaned the practice of several state agencies, including the RDC in question failing to report cases of fraud.
APNU MP Jaipaul Sharma made the point that if the preventative systems employed by the RDC had been functioning, someone would have, or should have noticed that the slips alluded to by the FS had been removed.
Rooplall told that PAC that though the issue had not been resolved measures existed to prevent a recurrence. He said the RDC has written to GuyOil, informing it of all the vehicles authorised to receive fuel.
However, Greenidge, who seemed to have the consensus of other committee members, said more needed to be done, especially since this very system existed prior to the fraud.
Shadick suggested that the use of ID cards to accompany signatures may avail some amount of accountability and transparency to the process. She also said that both the region and the ministry needed to commission an investigation into the matter so that its architects can be uncovered.
Rooplall was given two weeks to take new measures and report on progress made.
