Former Auditor General Anand Goolsarran says that the government’s massive Information and Communication Technology (ICT) programme should be put on hold for a forensic audit and he also raised questions about the procurement of laptops by the state.
In his column in today’s Stabroek News, Goolsarran adverted to the major problems which have erupted in the much-vaunted project to lay a fibre optic cable from Brazil to the coast and conflicting figures on the number of laptops handed out as part of the project.
“I believe that whenever it reconvenes, the National Assembly should request that the Government’s ICT programme be placed on hold until such time that both a forensic audit and a value-for-money assessment are carried out and the results made available”, Goolsarran asserted. He said that the former would be to ascertain whether any financial impropriety has occurred while the latter would be to assess if: (a) the financial resources made available to the programme have been employed in an economical, efficient and effective manner; and whether (b) actual outputs, outcomes and impact are commensurate with those planned.
“It is public knowledge that the Audit Office has neither the capacity nor the competence to undertake these highly skilled assignments. It also lacks the desired degree of independence from the Executive, free of government interference. In the circumstances, the Public Accounts Committee (of Parliament) should request the Auditor General to contract out these assignments based on a system of international tendering, and the related reports tabled in the National Assembly. Only then should a decision be made about the future of the Government’s ICT programme”, Goolsarran asserted.
Noting that the US$69.1M project entails the laying of 560 kilometers of fibre optic cables from Georgetown to Lethem, the installation of the wireless and terrestrial network system from Moleson Creek to Anna Regina and the acquisition and distribution of 90,000 laptops to families in need of them, Goolsarran said these components have to work together to permit the connectivity of government offices and the laptops that have been distributed.
However, with the entire $13.827 billion for the programme spent, there is no connectivity as the fibre optic cable has encountered severe problems. Pointing out that in February 2014 Prime Minister Sam Hinds acknowledged that there was improper handling and installation of the cables, Goolsarran said that the PM did not mention the role of those responsible for overseeing the implementation of the project on behalf of the Government, and hence the taxpayers. Goolsarran also said that the PM signalled that an independent third party expert was requested to review the decision to lay the cables along the Linden-Lethem road.
Said Goolsarran “One could logically ask: Why was this not done before the works commenced, and was it not a case of placing the cart before the horse?”
Goolsarran also contended that the decision to use contractors with little or no experience in laying fibre optic cables was an unfortunate one and a costly mistake, considering the delicate nature of these cables and the huge expenditure involved.
“We are now not only left with a non-functioning system but also a large debt burden for future generations to repay. Some US$32.8 million was borrowed from the China Export Import Bank to be repaid over a 15-year period commencing 2017. Any remedial work on the fibre optic cables is likely to consume significant amounts of financial resources, whether by way of an additional loan or central government financing. A thorough review and analysis will therefore have to be carried out to assess whether it is economically feasible to salvage the project, perhaps in some reformulated way”, Goolsarran said.
Laptops
He also alighted on unclear information with regards the initial intended purchase of 90,000 laptops for the ICT project.
He said that according to the Auditor General, sums totalling $1.558 billion were spent in 2011 on the purchase of 27,000 laptops, and as at September 2012, 9,133 laptops were still on hand while 103 were reported stolen. He said this suggested that 17,764 laptops of this figure were shared. In 2012, Goolsarran said that the Auditor General reported that an amount of $1.252 billion was spent on the procurement of another 27,000 laptops. At the time of the audit in July 2013, Goolsarran added that 4,149 were distributed. However, 2,649 were damaged while 2,011 were sent back to the supplier due to defects. He said this left a balance of 18,191 laptops in stock. The report, Goolsarran said, however, made no reference to the balance of 9,133 laptops from the earlier shipment.
Further, in his budget speech for 2013, Goolsarran said that the Minister stated that in 2012, $1.6 billion was spent for the purchase of 28,000 laptops resulting in a total of 56,000 laptops, as against the 54,000 reported by the Auditor General. In addition, according to the Auditor General, 21,893 laptops were shared out as of July 2013 even though the Minister’s statement indicated that as of March 2013, 26,832 laptops were distributed. These discrepancies need to be resolved, Goolsarran urged.
Moreover, according to the Minister’s budget presentation, the sum of $2 billion was provided in 2013 for the purchase of 34,000 laptops. Utilising the Minister’s figure, this will complete the acquisition of 90,000 laptops at a cost of $5.2 billion or US$26 million, or US$289 per laptop. Goolsarran said that the public has no idea about the make and technical specifications of these laptops to determine the reasonableness of the price paid. Goolsarran said he recently bought a Lenovo Think Pad X140e with all the latest features for just US$260 while a Dell New Inspiron 15 laptop currently retails for US$249.
Goolsarran further pointed out that in his 2014 budget presentation, the Finance Minister stated that 9,050 laptops were shared out in 2013 resulting in a total dispersal as of March 2014 of 35,884 laptops.
“Therefore, as of this date, 54,116 laptops were still in stock, which implies that 20,116 laptops relating to the acquisitions made in 2012 were still to be distributed. The undue delay in distributing the laptops could result in deterioration due to possible improper storage; the risk of further theft; and the possibility of the laptops becoming outdated.
The Minister also stated that the One Laptop Per Family initiative would be re-launched and re-invigorated and that an amount of $2 billion was allocated in 2014 for the acquisition of a third batch of laptops, of which 17,948 were scheduled to be distributed in 2014. Using a unit cost of US$289, a total of 124,602 laptops would have been acquired as at 31 December 2014 at a cost of $7.2 billion, equivalent to US$36 million”, Goolsarran posited.
He argued that it would have been more appropriate if the laptops had been purchased after a fully functional network system was in place.
“However, political expediency over sound managerial decision-making took precedence in the run up to the November 2011 elections. We are now in 2015, and most probably the laptops would have been purchased based on a contract entered into in 2011. Those acquired in 2011 and 2012 would have been three years old and may need to be replaced. Many are still to be distributed. Without a functional network system, recipients of the laptops would have been forced to acquire the expensive services of commercial internet service providers, which was precisely what the Government’s ICT programme was seeking to avoid”, Goolsarran lamented.
