The National Assembly yesterday approved $4.15 billion in spending from the Contingency Fund to cover expenses incurred during the period June to December 2019.
The sum which was expended by the former APNU+AFC government was contained in one of three financial papers brought to the House by Minister with responsibility for finance, Dr Ashni Singh. He explained that a range of advances were drawn from the Contingency Fund to meet the expenses and noted that the law particularly the Fiscal Management and Accountability Act requires that such advances be approved by the House.
The most significant expenditure reflected in the attached schedule was a $1.710 billion capital expenditure for the Ministry of Public Infrastructure to facilitate emergency work on the East Coast Demerara Sea Defence between the shorelines of Fairfield and Dantzig as well as emergency works to existing sea defence in Blankenburg, Retrieve, Leguan and Wakenaam.
Asked by former Minister of Public Infrastructure David Patterson to explain the scope of the emergency works, current sector minister Juan Edghill accused Patterson of misusing public funds.
Edghill reminded that such spending should be urgent, unavoidable and unforeseen but stressed that Patterson used emergency funds for “stockpiling” and the completion of routine activities such as the preparation of a feasibility study and design for the rehabilitation of the Charity Market Warf.
He told the House that $159 million had been spent on the sea defence at Prospect, Mahaicony, $13 million on the construction of a heavy-duty timber bridge at Dantzig and $143 million for the sea defence between Prospect and Broomhall
Additionally at least six lots were awarded by the Ministry tender board for the delivery of boulders in the sum of $69 million, $75 million and four lots of $90 million each.
It was this “supply and delivery of boulders” as well as several lots for the supply and delivery of clay which the Minister of Public Works labelled stockpiling while accusing the former political administration of contract splitting as a means to avoid taking the contracts to the National Procurement and Tender Administration Board for award.
He took pains to note that the Auditor General is likely to address these issues in his report.
The 2020 Audit Report which addresses 2019 spending has already declared that the entire $4 billion plus was unlawfully withdrawn from the Contingency Fund as it was used for routine expenditure and therefore did not comply with the Financial Management and Accountability Act (FMA)
“Seven advances totalling $4.150 billion were drawn from the Contingency Fund and used for routine expenditure. As such, the advances did not meet the criteria defined in Section 41(3) of the FMA Act and remained un-cleared at the time of reporting in November 2020”, the Audit Report stated.
Despite “all of this expenditure”, Edghill maintained that the area was still experiencing flooding when his government got into office.
He went on to state that the issues have since been addressed.
The same Ministry also received $40 million to conduct major repairs to two generators for the Port Kaituma Power and Light Incorporation.
Meanwhile, the Central Housing and Planning Authority provided $2,176, 997, 945 for payment to the National Industrial and Commercial Investment Limited (NICIL) on lands purchased.
In total the Assembly approved of $3.93 billion in Capital Expenditure.
Meanwhile a $223.24 million addition to the Current Estimates for the 2019 year was similarly approved.
The Ministry of Agriculture expended $179,369,546 to facilitate emergency works in Regions 2,4, 5 and 6 to reduce flooding while the Ministry of Public Health spent $13,874,900 to conduct a “vaccination mop up campaign” due to low vaccination coverage.
Region Six also received monies under this appropriation, $30 million for the purchase of additional fuel and lubricants for Manarabisi and Black Bush Polder pump stations to facilitate the irrigation of farmlands.
