Government is currently awaiting a response from Brussels on whether the European Union (EU) is going to resume budgetary support amounting to billions which was suspended due to the prorogation of parliament last year by then President Donald Ramotar.
Earlier this year, the EU said the absence of budget oversight was among the reasons for its withholding of $5.8 billion (€25 million) in funds due to Guyana for sea defence and the sugar sector. At the time, Ramotar had suspended parliament to avoid a no-confidence vote against his government.
Former Auditor-General (AG) Anand Goolsarran confirmed to Stabroek News yesterday that he was recruited by the EU to do a revision of the current Financial Action Management Plan which was entered into by the government and the EU in 2013. Simultaneously, Goolsarran was asked to do an assessment on how to proceed. As a result, he completed a 14-point Budget Transparency Action Plan which was then submitted to the Finance Minister for approval.
Goolsarran told Stabroek News that the EU Court of Auditors “takes a serious account of EU funds that are disbursed in an environment” where there are accountability issues. The former AG said after general elections were held in May and the resumption of parliament in June, the EU felt there was a return to some normalcy.
He pointed out that the incurring of excess expenditure totalling $4.544 billion after the prorogation of parliament in 2014 was contentious. The former AG said this amount of excess spending would have the EU on alert.
According to Goolsarran’s 14-point Action Plan, by 2017, the 2018 budget would be completed prior to the end of 2017 and presented in December of that year.
He said the Action Plan relies on shortening the accountability timeframe for budget preparations. “What we were thinking is the financial statement of the country could be made available no later than the 28th of February and the Auditor General’s report be received by the 30th of June and completed. The Public Accounts [Committee of Parliament] by September should finish its work,” he said.
According to Goolsarran, in this way, the financial reports of the previous year would be made available for use for preparations for the following year. He asserted that this could be a significant achievement for accountability as it will be done in a phased manner. He added that by 2018, he would hope the 2019 budget would be prepared as early as November which would mean that all systems are working alongside each other. He highlighted the work of the AG and the PAC in this regard.
In terms of the current relationship between the APNU+AFC government and the opposition PPP/C, Goolsarran said mediation could have proven fruitful to get both sides working together. “Sensing” that there would be tension between the two sides, provisions for mediation should have been made from the inception, he said. The PPP chairs the PAC.
The opposition’s Chief Whip Gail Teixeira stated during her weekly press briefing on parliamentary matters last week that government is withholding critical information the PPP needs to review prior to making budget submissions and recommendations. She said a list of documents was requested by the party to no avail.
According to Goolsarran, unfortunately the “PPP still acting a fool for 2016.” The former AG said it may be because their loss in the general elections is still fresh but the party would have valid points and recommendations and should not waste the opportunity to make an input.
