Prior to Region Four’s proposed $3.209 billion budget being cleared by Committee of Supply yesterday, members of the opposition called for systems to be put in place to monitor the use of resources and prevent fraudulent activities.
APNU MP Jaipaul Sharma stated that as a member of the Public Accounts Committee (PAC) he wanted to know what the ministry would do to prevent contractors from overcharging for physical works done throughout the region.
Sharma stated PAC meetings continuously dealt with overpayments to contractors for rehabilitation works done to RDC buildings. “I don’t know if this $6 million will be squandered. What system do you have in place, as the minister responsible, to ensure that what is reported to the Auditor General year [after] year after year is not reoccurring?” he asked Junior Local Government Minister Norman Whittaker.
Whittaker denied that any breach of the Procurement Act was possible and further said that “we follow the National Procurement and Tender Administration procedure.”
The issue prompted some contention as PPP/C MP and PAC member Gail Teixeira argued that the consideration of the budget estimates was not the time to discuss PAC issues. She also noted that the PAC has not yet ruled on findings of the recent Auditor General reports. APNU MP and also a PAC member Volda Lawrence, however, noted that the every MP receives a copy of the Auditor General’s report “and it is their prerogative to peruse the report and ask any questions.”
Sharma continued to press Whittaker and sought clarification as to other systems in place to prevent fuel fraud that has come to light recently in the media.
Chairperson of the Committee Deborah Backer stated that due to the recent attention illegal uplifting of fuel has received in the media, it was a relevant question. Sharma stated that “a system of uplifting of fuel from the gas station should be put in place in which that vehicles not owned by the region cannot uplift fuel.”
Whittaker stated that “systems have been put in place with respect to persons authorized to sign on to such requests and there is greater monitoring.” He also noted that the policy has always been that only authorised vehicles are charged with the uplifting of fuel and lubricants so the $30 million allotted would be correctly monitored. Whittaker also stated that an investigation was underway with regard to the alleged uplifting of over $700,000 of fuel in Region Four in December 2011 from a GuyOil station.
Members of the opposition were also keen to understand how various line items were misrepresented in the 2012 budget as Whittaker stated multiple times that increase in various allotments stemmed from this prior mistake. “I am amazed to know that misclassifications have occurred in the past and I’m interested in knowing where else,” APNU’s Carl Greenidge stated. He had previously asked about the $6 million increase from zero in 2012 allotted for building maintenance, under regional administration and finance. Whittaker stated that “prior to 2013, maintenance of administrative buildings were placed under public works… as of 2013, you will find it with other programmes also.”
APNU MP Basil Williams inquired about another misclassification—“electricity charges”—and why it rose to $28 million. Whittaker again said the line item allocation was placed in public works last year. He spent much of his time acknowledging that classification issues would be the way to answer questions from the opposition. He noted that the deputy Regional Executive Officers’ salary of $195,000 was not under the line item classified as contract employee because the post was transferred and placed under a different line item.
Backer had to step in after much back and forth to concisely interpret for the minister that the contract employee was not listed as such.
Prior to the consideration of the estimates beginning, APNU MP Ronald Bulkan voiced his opinion that without input from the Regional Democratic Councils (RDCs), the budget estimates could not depict a true reflection of areas that needed servicing and expansion and others which may need less. Bulkan stated that while the ministry and the REOs made a definitive budget, both parties failed to address the needs of the RDCs.
