At the Public Accounts Committee (PAC) meeting on Monday last with the Region One administration, significant financial oversight issues were brought to the forefront. One which raised great alarm was the lack of supporting documentation for 333 cheques totalling nearly $134 million found in a safe at the Regional Democratic Council (RDC) office.
It was indicated that this absence was a sign of systemic failures in the region’s financial processes, which the PAC insisted must be rectified. The committee members stressed the importance of implementing robust systems to ensure that all cheques are accompanied by valid paperwork, such as procurement documents and payment vouchers.
During the meeting, PAC member Ganesh Mahipaul raised concerns about the then Regional Executive Officer (REO) Teka Bissessar’s lack of adequate response to a management letter from the Audit Office in October 2020. Audit Director Gitanjali Singh stated that although Bissessar did provide a response, it was insufficient. It wasn’t until a follow-up visit in 2021 that the Audit Office discovered the necessary documentation, which confirmed that some cheques had been cashed while others had been returned to the Consolidated Fund.
The high turnover rate among the regional financial team was also discussed. The PAC noted the recent appointments of many staff members in key positions, raising alarms about their capability to manage the ongoing financial responsibilities adequately. With most of these critical roles filled in the past few years, including some by personnel who have just begun their tenures, the committee expressed its worry about the potential implications of this instability.
The meeting also revealed troubling procurement irregularities, which were highlighted in the Auditor General’s 2019 report, particularly the failure to publicly advertise 114 contracts that exceeded established monetary thresholds. It was found that six unapproved contractors received contracts totaling $79 million without evaluation by the Regional Tender Board, raising concerns about the region’s contracting procedures.
The PAC highlighted the inappropriate use of restricted tendering methods, which limited supplier engagement and conflicted with the established regulations meant to uphold fairness and transparency in the procurement process. This pattern, seen across multiple contracts, led to significant financial discrepancies.
PAC member Dr Vishwa Mahadeo asked REO Sewchand for clarifications about the contract awards and the status of the equipment acquired. The REO promised to provide more information to the committee in the upcoming weeks.
Further complicating matters were challenges resulting from the failure of several regional officials to provide necessary documentation during audits, despite recommendations from the Auditor General. This lack of response hampered the committee’s ability to conduct thorough oversight. Additionally, there were issues related to the reconciliation of excess drugs received from the Medical Management Unit (MMU), with officials struggling to clarify how these items should be accounted for and classified, raising further concerns about transparency in inventory management.
The committee also scrutinized the quality of completed construction projects, especially in health facilities that reportedly did not comply with specified requirements. For instance, an x-ray room was constructed in a manner that deviated from the original project design. Regional engineers were pressed for clarifications regarding project modifications and the criteria utilized for evaluating construction quality.
In the light of these findings, the PAC made several recommendations aimed at addressing the shortcomings. They underlined the urgent need for training programmes to enhance the skills of newly appointed regional accountants and procurement officers. The committee called for stricter adherence to public procurement laws and emphasized the necessity of ensuring that contracts are publicly advertised. Additionally, they urged the establishment of clearer processes for documenting and reconciling financial transactions to address the lack of appropriate paperwork. Regional engineering teams were also encouraged to engage comprehensively with healthcare requirements during the planning and execution of construction projects to ensure that facilities meet necessary operational standards.
As the session wrapped up, PAC members reaffirmed their commitment to improving financial accountability and procurement integrity in regional administrations. The committee plans to reconvene in two weeks to follow up on the issues discussed and review any further documentation provided by regional officials.
