Government is seeking parliamentary approval for over $2 billion in extra-budgetary spending including $501 million for BK International as part payment for an out-of-court $1.1 billion settlement, and $109.6 million in extra funding for the University of Guyana which the institution had been seeking.
Minister of Finance Winston Jordan yesterday tabled Financial Paper 2/2016 in the National Assembly seeking approval for $2 089 699 085 in extra government spending from January 1st to December 31st this year. The highest single sum being sought is for the Ministry of Communities and it is for $501 million.
According to the Financial Paper, the provision is to meet payment in accordance with the settlement agreement reached with BK International in relation to the Haags Bosch landfill site. Minister of Communities Ronald Bulkan had said last month that BK International was paid a sum of US$5.7 million in an out-of-court settlement for works done at the Haags Bosch Sanitary Landfill, following the former government’s termination of its contract.
Due to myriad problems with the Haags Bosch contract over the years, the PPP/C government terminated the contract on February 27, 2015. BK owner Brian Tiwarie subsequently filed an action in the High Court challenging the decision and on November 26 last year, the then Chief Justice (Ag) Ian Chang ruled that the termination of the contract by the former government was not correctly done.
The Ministry of Communities and Attorney General Basil Williams met with BK International in January and negotiated a settlement. Bulkan had said that BK had made a claim for over US$10 million for 18 months of work from June, 2014 to November, 2015. The minister had said that they paid BK International for 20 months instead of 18 months as claimed. The settlement was designed to have the company vacate the landfill and for new arrangements to be made, he had explained.
Three parts
According to the Financial Paper, government made a settlement agreement with BK International which totaled $1,177,050,000. Payments will be made in three parts and $427 million has already been paid. The supplementary request will facilitate approximately 68% of the payment in 2016 and the remaining amount will be included the budget request for 2017.
Meantime, under the Ministry of Education, government is seeking approval for $109.6 million for UG. It was stated that this will support UG’s endeavour to deliver quality education. The Financial Paper details that the sums being sought will also cover the re-accreditation of the School of Medicine to produce 1,600 graduates to support the development of Guyana. Of the sum, $1.5 million is for the provision of critical office supplies required by the School of Medicine prior to the November 2016 visit in relation to the re-accreditation.
Further, $18.7 million is for the maintenance/upgrade of classrooms and laboratories for programmes being delivered by the School of Medicine. It was noted that these must also be completed prior to the November 2016 re-accreditation site visit by the team undertaking the visit. Meanwhile, $89.3 million is for the expansion of student and staff research and development. The university is obliged to fund all aspects of the costs associated with the site visit of the School of Medicine for the reaccreditation. This includes international travel, accommodation, meals, internal transportation and subsistence to the visiting team which will have no less than six persons.
Stabroek News had reported on Monday that UG had submitted a supplementary budget request to government to underwrite critical maintenance, health and safety, and instructional needs. During the budget presentation, the proposed allocation to UG was placed at $3.2 billion with an additional $500 million in subvention.
Towards the ending of June, a conference of local and diaspora stakeholders of UG had called on government to provide emergency funding to the institution to reverse its “imminent collapse.” Contending that the university had been woefully underfunded in the past, the recital to the resolution said that the Education Resource Ambassadors visited the Turkeyen and Tain Campuses and were “dismayed and deeply troubled at the degradation and neglect of the institution.”
For years there have been complaints about the state of the campuses and demands by students and lecturers for major changes. There were several strikes and other protests over this.
Two engines
Meantime, under the Ministry of Public Infrastructure, $194.2 million is being sought for the acquisition of two engines for the M.V. Kimbia, $174.5 million for completion and construction of roads in Regions 4, 6 and 10, and $110 million for the rehabilitation of the Iwokrama-Fairview airstrip which would see the runway extended to 4200 feet.
The Ministry of the Presidency is seeking approval for $71.5 million to rewire the head office building of the Guyana Lands and Surveys Commission and the purchase of vehicles and equipment.
For Parliament Office, $69.5 million is being sought to meet a series of expenditures including $20 million to pay costs of all overseas conferences and seminars for Members of Parliament and staff while $15 million is being sought for refreshments and meals. According to the Financial Paper, more sittings of the National Assembly are anticipated for the rest of the year and it is also expected that the contract for meals and snacks will be re-tendered and prices of the new supplier are likely to be higher.
The overall sum for Parliament Office also includes $2.5 million to cover increased hours, meals and transportation costs for staff as a result of the anticipated increased sittings, while $3 million is being sought to cover telephone bills inclusive of roaming charges for all Members of Parliament “as a result of Parliament purchasing cell phones for Ministers.” $29 million is also included in the sum for Parliament Office for major repairs and overhauling of the wrought iron base plates which are corroding, while repairs to the gates of the perimeter fence of the Public Buildings are needed urgently.
Meantime, $72.8 million is being sought under the Ministry of Indigenous Peoples Affairs for the hosting of activities for Indigenous Heritage Month 2016 catering for 212 communities. This request caters for $63.6 million for the Indigenous Heritage month and the remainder for payments related to accommodation for Hinterland participants for Heritage activities.
Various sums amounting to $320 million are being sought for the Ministry of Public Telecommunications which was gazetted on January 6th, 2016 and was in the process of formulating its annual work plan at time of Budget 2016. Among the sums sought are $37.7 million for the rental of buildings, $88.7 million for the payment of dedicated internet from GT&T, as well as satellite phone services and service from Digicel, $55.9 million for the payment of electricity charges for the 54 LTE sites, the head office and warehouse; and $72.7 million for security charges for various sites and services.
A sum of $22.3 million is also being sought for the payment of three Ministerial Advisors and one consultant.
Meantime, under the Ministry of Public Health, $62.5 million is being sought for the leasing of a warehouse facility belonging to Linden Holding Inc for use by the ministry for the storage of pharmaceuticals.
Further, under the Ministry of Legal Affairs, $17.9 million is being sought for payment as contribution towards increased tuition fees for Guyanese Law Students attending the Hugh Wooding Law School for the academic year 2016-2018. This contribution represents 25 percent of the economic costs of tuition fees for 50 students.
A total of $55.7 million is also being sought for the Guyana Defence Force which has benefitted from significant supplementary expenditure this year and among the provisions sought is $14.6 million for the Civil Defence Commission to support relief efforts to assist citizens affected by flooding or drought.
Meantime, $20.3 million is being sought under the Ministry of Public Security for salary-related and operational expenses for the Special Organised Crime Unit (SOCU) since SOCU was shifted to that Ministry from the Ministry of Presidency with effect from January 2016. Previously, months prior to second half of the year were catered for by the Ministry of the Presidency.
Further, under the Supreme Court, $180 million is being sought for various expenditures including $21 million as government’s contribution to the Caribbean Court of Justice to support the CCJ 2016 Accelerated Capacity Expansion Initiative. Of the overall sum, $63.7 million is for employment costs for 68 positions, $11.8 million for salary in lieu of leave for six judges, $26.6 million for furniture and equipment and $56.8 million for the Sparendaam Magistrate’s Court.
