Minister of Public Security Khemraj Ramjattan said yesterday that the “damning” findings of the police audit of the financial records of the Special Organised Crime Unit (SOCU) require the “shifting around” of persons and possibly firings.
Ramjattan, while addressing questions at an Alliance for Change (AFC) press conference, declined to state some of the recommendations made but said that Commissioner of Police Leslie James recently told him that action will be taken.
According to information gleaned by Stabroek News, the Guyana Police Force (GPF) Audit Department completed the audit several weeks ago and submitted same to James. Heading the list of more than a dozen recommendations is the immediate transfer of the unit’s head, Sydney James and his secretary, Kevin Haywood, who assisted in the writing up of records which were submitted as part of the audit investigation. They both are still employed at SOCU.
The damning findings of the audit would be seen as a major embarrassment for the government as SOCU had been investigating alleged fraud and wrongdoings at a series of ministries and agencies from during the time of the previous administration. These investigations stemmed from special audits that were commissioned by this government. SOCU now faces some of the same allegations.
The police audit, which commenced in February following claims of grave mismanagement, which included the misuse of its operational fund, uncovered serious irregularities, including the falsification of records. Aside from the transferrals, a fraud investigation of several of the discrepancies was recommended.
“I understand that action will be taken by the Commissioner…I saw the report and it is not a very nice report,” Ramjattan said.
While noting that the Commissioner has promised to take action, he made it clear that he cannot interfere in the matter. “Operational matters a minister must not indulge in and that is an operational matter,” he said, while noting that the commissioner ordered the audit after receiving information and indicated that he will take action. “He told me. I am hoping that it will be action taken very early,” he added.
Asked if that action involves termination or shifting around of officers, Ramjattan said “it certainly will have to be shifting around, probably some terminations too.”
He said he does not know what the decision of the Top Cop would be but “that is going to be the Commissioner’s decision.”
When asked what steps will be taken to improve the image of SOCU, Ramjattan noted that “institutions can get rotten” and said that what a government does is through its leadership at the various units. “[…They] ask for audits, get the things right and move on and put the correct people in places that could have remedied the defects that were occurring and that is what you do in any institution…,” he said.
Sources close to the unit yesterday expressed outrage that no action has been taken on the matter even though evidence of fraud had been uncovered.
Stabroek News was told that the SOCU head’s contract expires later this year and it is unlikely to be renewed. It appears as though those in authority want to wait out this period. However, sources say that this will be “a slap in the face” as the audit made serious conclusions.
Inaction
Observers and persons close to the unit say that the inaction is disturbing. It was also noted that even those persons implicated in wrongdoing at SOCU should be suspended from office until the outcome of the fraud investigation as according to sources there is enough evidence to proceed with criminal charges.
Stabroek News had reached out to the Commissioner several weeks ago and he declined to say whether or not he was in possession of the report.
The audit focused on the years 2016 to 2019, during which time over $52 million was collected by SOCU from the Ministry of Public Security for its operational fund. This fund, according to the audit report, a copy of which was seen by this newspaper, was to be used for the payment of SOCU informants, the rental of vehicles for surveillance, the maintenance of the unit’s building, and basic administrative expenses, among other things.
During the period under audit, the auditors found that several identifiable staff members received sums totalling millions of dollars and while it was claimed in most cases that the money was for intelligence gathering, there was no corroborating documentation. Further, the money paid out to the staff was not far off from what was paid out to informants/sources.
In one instance, the examination of payments of more than half a million dollars each to three ranks in one month in 2016 is said to have uncovered receipts that were backdated to make the payouts look legitimate.
According to the report, the auditors were hampered by the absence of receipts and the lack of records for some expenditure.
There was also evidence of unsigned entries in the financial records, while an official has alleged that their signature was forged.
It was also found that some of the listed expenditure was concocted. There are reportedly numerous cases where purchases were recorded but when the auditors checked with vendors, including a number of established businesses, it was discovered that SOCU collected quotations but never made the purchases.
Also highlighted were irregular transactions between SOCU and a number of businesses. The auditors found invoices that were duplicated or tampered with, fraudulent double entries, and false entries.
A sum of $10 million that was reportedly paid to an Alberttown business for car rental services raised red flags as the receipts provided to the auditors were said to be vague, while the owner of the business was described as being uncooperative.
Former British advisor to SOCU Dr. Sam Sittlington had made shocking revelations about the operation of the unit shortly after he was fired by the UK government for registering a local branch of his company here. He said that tensions arose between him and Sydney James after he questioned the spending from the operational fund.
According to him, items such as printers, ink, paper and toiletries, which were essential to the smooth functioning of the office and the comfort of those who worked there, were not available. Additionally, he said, investigators were not being given mobile phone credit and there was no internet available.
These allegations, which were reported on by this newspaper, were subsequently confirmed by staff, who had disclosed that in violation of anti-money laundering laws, seized cash was being kept at the unit and in some cases at the Guyana Police Force’s Finance Department.
The SOCU head is a former army intelligence officer who was appointed under the PPP/C government in 2014 following the establishment of the unit. Since leaving office in 2015, the party has accused the government of interfering in the work of the unit and issuing directives which targeted members of the party.
The PPP has since called for the unit to be shut down and for an independent forensic audit to be conducted towards prosecuting all personnel implicated in wrongdoing.
