Dear Editor,
I reference your article, “APNU+AFC has not said how much of US$18m signing bonus spent on border controversy fees”, which was published in Stabroek News, 2020.09.07. The genesis of this article was an interview conducted by SN reporter, Marcelle Thomas, on 2020.08.28. I congratulate her on a balanced article, in which more use was made of direct quotes from the interviewee. This allowed the Coalition government’s views to be aired without the usual distractions and injections, thereby allowing the readers to form their own opinions.
In spite of the above, I wish to offer a few comments and observations. At all times, the signing bonus was held in a special account at Bank of Guyana. The moneys were invested overseas, earning valuable income for the country. Such accounts are not secret; indeed, no secret account can be held at Bank of Guyana. The accounts of the Bank of Guyana are audited by the Auditor General (AG), who is not constrained by anyone as to what he can report. The fact that it was not reported publicly by the Coalition government was done for strategic reasons explained in the article under review. Of course, many persons will continue to insist that full disclosure should have been made at the time of receipt of the money. It is their right to do so. But this has to be weighed against the greater of good of not jeopardising our chances of getting the United Nations Secretary General’s nod.
Relatedly, special accounts are not unknown to the accounting system of the country. For example, often times, on receipt of a loan or grant from an international financial institution or a bilateral development partner, there is a requirement for the opening of a special account in the name of the project, in order to receive disbursements and undertake withdrawals, and for proper accounting and auditing to take place. Indeed, over one hundred such accounts still exist at the Bank of Guyana, in spite of my heeding the AG’s advice and closing many that were dormant and transferring their balances to the Consolidated Fund (CF).
Many commentators, including Christopher Ram, and a few politicians remain adamant that the moneys should have been placed in the CF. A politician even approached the Court for judicial review, but was not disposed to take similar action when the PetroCaribe Account that held over US$1 billion, was established as a special account at the Bank of Guyana. This matter is still pending before the Honourable Chief Justice (ag.) Madam Roxane George. Until she gives her decision, it is futile to continue a discussion as to the correctness of placing the signing bonus into the CF. The matter remains sub judice and SN and all other persons should refrain from commenting.
What is factual and a reality is that the entire balance of the special account was transferred to the CF, in January 2019, as correctly reported by Ms. Thomas. It was done soon after the government had received written communication that the UN Secretary General had decided to remit the Guyana/Venezuela controversy to the ICJ. This is consistent with our pledge that the funds would have been placed in the CF at the appropriate time. The Bank of Guyana was happy to receive the US$18m+ injection, at a time when the foreign exchange rate and the reserves were under pressure, following the No Confidence Motion, in December 2018.
I did indicate to Ms Thomas that I could not say how much was paid in legal fees. It is hardly a detail I am expected to have at my fingertips. I do not think an issue should have been made of this; such information can be had easily from the Ministry of Foreign Affairs or the Auditor General. In furtherance to the closure of this matter, I suggest a forensic audit be done of the account prior to its closure. It is not too late for the AG to append such a report to his 2019 Report of the Auditor General.
Yours faithfully,
Winston Jordan
Former Minister of Finance
