Acting Chief Justice Ian Chang on Wednesday granted an interim order that effectively prevents the government from accessing funds secured from two recent Inter-American Development Bank (IDB) loans until a legal challenge brought by former Finance Minister Carl Greenidge is fully heard and determined.
Greenidge last month filed an application to prevent the government from accessing the funds outside of the Consolidated Fund and the required Appropriation Act.
Justice Chang additionally granted the defendants in the case, Finance Minister Dr Ashni Singh and Attorney General Anil Nandlall, five days to file an affidavit in response to the application made by Greenidge.
The case will next be heard on April 8.
Greenidge is seeking declarations that the proceeds of two loans, the US$15 million security loan and the US$17.1 million environmental loan, must be paid into the Consolidated Fund of Guyana and that there must be no withdrawal of these proceeds except by appropriation under Article 217 of the Constitution. Greenidge is also seeking a declaration that Singh cannot lawfully spend the monies from the loan unless authorised by the National Assembly.
In his affidavit in support of the summons, Greenidge listed a series of concerns including that the 10th Parliament has been dissolved without an Appropriation Act being approved in relation to the IDB loan. He also cited Parliament’s disapproval last year of budget funds for the Low Carbon Development Programme, which is to benefit from the proceeds of the IDB environmental loan in question.
He said he feared that Singh will spend the sums unless prohibited by the court.
He then cited a series of actions by Singh which he said led him to be fearful of this. These actions included the spending by Singh of $4.5 billion last year which the
High Court recently ruled had been illegitimate. He also cited the conduct of government holding company NICIL, of which Singh is part, over its expenditures. Greenidge also referenced a complaint which had been lodged against Singh with the Institute of Chartered Accountants of Guyana.
Greenidge’s application was filed by attorney Roysdale Forde.
