While close to $100 million of the $1 billion Rural Development Fund approved in last year’s national budget has been spent, the government yesterday said it has found no proposal or documentation for the sum spent or on what was planned for the way forward under the fund. Minister of State Joseph Harmon, speaking at his weekly post-Cabinet press briefing at the Ministry of the Presidency said Minister of Business Dominic Gaskin had informed Cabinet of this and a decision was taken to have the fund reviewed.
He explained that the fund was approved in the 2014 budget and was managed by the Ministry of Tourism, Industry and Commerce. He said the $1 billion fund was expected to create employment in rural communities. Harmon also indicated that Gaskin, upon reviewing the status of the project, found that some work was being done at Wakenaam, Leguan, Tuschen and at Enmore. The projects at Wakenaam and Leguan, he said, had to do with the establishment of a plantain chip factory and call centres.
“What was amazing was that as at the 30th June 2015, over $20 million had been spent on the building at Wakenaam, and that there was a further $33.6 million still to be spent on it. The building at Leguan there was a sum of at least $24.7 million spent,” he said that adding that the minister was unable to find documentation for the sums spent.
“The Minister of Business being the business person he is, (is) looking now for proposals and documents that had to do with these projects…but of course he could find nothing,” Harmon informed.
He said that Cabinet has decided that the minister with assistance from the various agencies such as Guyana Marketing Corporation, the Ministry of Agriculture and other elements within the ministry of business, will “conduct a very serious review of the monies spent under this project..”
He said so far the understanding the ministry has is that close to $100 million has been spent and now a review will have to be done pertaining to the balance of money in the account and the way in which the first set was spent. Cabinet he said, was advised that Prime Minister Moses Nagamootoo, Minister of Communities Ronald Bulkan and others have undertaken to join with the minister to ensure that “an urgent review is done of these projects”, to ensure accountability for the sums spent and to ensure the money was spent for the purpose intended.
During last year’s budget debate, former acting Minister of Tourism Irfaan Ali had said that the $1 billion was proposed, out of the ministry’s overall $2.2 billion budget, for the fund which will support enterprise development initiatives in rural areas. He had also promised that there will be quarterly reports on the progress of the $1 billion Rural Development Fund and had encouraged members from regions countrywide to educate their villagers about how to access it. “This revolving fund covers all regions. Once it is approved, public ads will be made and calls for proposals to be part of this revolving fund,” he had said.
Further, the minister informed that while there will be a $700,000 loan ceiling for individuals, that figure will increase if community groups applied. The amounts were not specified but he said it would depend on the number of persons who formed the group.
