Opposition leader David Granger has called the recent $3 billion loan to the Central Housing and Planning Authority (CH&PA) by the Guyana Geology and Mines Commission (GGMC) unlawful and said the coalition would seek to take action against those responsible.
“It is outrageous that state funds, which do not go into the Consolidated Fund, could be used improperly for this speculative matter in the housing sector,” Granger told reporters at an APNU press conference yesterday.
He said the GGMC’s move is completely “out of order. It is outside of the law.”
Granger, asked for a reaction to the announcement which was made by way of a joint press statement on Thursday, said his understanding is that the rules governing the expenditure of GGMC are clearly defined in that funds are to be used in matters which can advance geology and mines. The opposition leader, while mentioning the use of NIS money to fund the construction of the Berbice Bridge, said, “This is all part of the lawlessness that I hope you all will be able to correct on the 11th May….”
In his view, the allocation of the funds to the housing ministry constitutes a misuse of state funds. “It is not private money. It is state money and state money is used in accordance with rules and APNU has been campaigning to have all the state funds paid into the Consolidated Fund… This is the type of mischief we have been trying to prevent because it is lawless,” he stressed.
“Our lawyers will investigate to what extent there has been a breach of the law and if the minister or any official is found to be in breach we will take action either through the courts or when the National Assembly reconvenes. It is a travesty that workers should be protesting only for a few weeks and they had not been given relief while the state funds are being used for other purposes not authorised by the law,” he added.
The joint statement from the GGMC and the CH&PA said following the submission of an investment proposal by the CH&PA in January 2015, the agreement was signed. The statement said the proposal is for the investment of $3 billion to be loaned to the CH&PA for a period of one year and to be used for the development of the housing sector.
According to the statement, the Board of Directors of the GGMC met and deliberated on the proposal submitted and it was noted that the interest rate being offered by CH&PA was 5%, which was 3.2% more than what was currently being earned via the commercial banks and other investment options open to the commission.
“At the level of the Board of Directors, it was agreed that the investment proposal was financially prudent and sound. In this regard, the Board agreed to the granting of the loan subject to the terms and conditions enshrined in the Loan Agreement and any additional guarantees required by the Commission,” the statement said. No information was provided as to when the loan agreement was signed.
It added that “The CH&PA project is pivotal to the realisation of the Government of Guyana strategic target of allocating 30,000 lots under the Adequate and Affordable Housing Programme in order to maintain momentum in the provision of service land in several areas on the East and West Demerara.”
Based on documents seen by this newspaper, Permanent Secretary in the Ministry of Natural Resources and the Environment Joslyn McKenzie forwarded a draft of the loan agreement to GGMC Chairman Clinton Williams on January 19 for him to review.
Earlier, Permanent Sec-retary of the Ministry of Housing and Water Emil McGarrell had forwarded the loan agreement draft to McKenzie and Minister of Housing and Water, Irfaan Ali for their review.
