-PAC hearing told
A Public Accounts Committee (PAC) meeting two Mondays ago heard that the Regional Demo-cratic Council (RDC) of Region Seven has failed to recover approximately $2.329 million in overpayments made to contractors for several projects in the region.
The Auditor General’s 2019 Report highlighted that the region failed to recover a total of $2.387 million in overpayments made in 2017 and 2018.
According to the report, four projects have outstanding balances, and they are: Maintenance of the Duplex Living Quarters at Mongrippa Hill ($1.441 million), Maintenance of a shed at Beach View Nursery ($58,000), Main-tenance of the Bartica Secondary School ($564,000), and Main-tenance to the Doctor’s accommodation at the Regional Health Office, Bartica ($324,000).
Regional Executive Officer (REO) Kerwin Ward, who led the region’s team in presenting responses to the auditor general’s findings, informed the committee that the region has made some progress in recovering some of the funds. He said the overpayment for the maintenance of the shed at Beach View Nursery was refunded and he produced a receipt as evidence.
Meanwhile, Ward noted that the contractor for the maintenance of Bartica Secondary School has promised to make a refund. However, the overpayments for the maintenance of the duplex living quarters and doctor’s accommodation remain outstanding, with the contractor for the former project promising to discuss a way forward.
With it being over five years with money still outstanding, PAC member and Public Works Minister Juan Edghill asked the REO when last he wrote to the contractors about making good on their overpayment. To this, Ward responded that it was in September 2023. As a follow-up, Edghill further asked the REO how he dealt with overpayments that have been long outstanding. The REO revealed that one of the contractors has passed away, making it challenging to recover the outstanding balance.
The meeting also highlighted concerns about transparency and accountability in Region 7’s financial management practices, particularly in relation to medical supplies and equipment. Ward and his team were also grilled by Governance and Parliamentary Affairs Minister Gail Texeira and Opposition MPs Ganesh Mahipaul and Juretha Fernandes along with other committee members and they were found lacking in their responses.
The region’s pharmacist, for instance, acknowledged that there was a procedure in place for disposing of expired drugs, but could not provide specific numbers on the percentage of expired drugs. Another issue was the reconciliation of financial statements with the Ministry of Health. The committee asked if the reconciliation was complete, but the region’s accountant replied that it was ongoing. The committee pressed for a clear answer on whether the reconciliation was completed or not.
The auditor general’s report highlighted shortages and excesses in medical supplies and equipment, which raised questions about the region’s inventory management practices. The committee asked if the region had a system in place to avoid such issues in the future.
Since the REO and team were finding it difficult to produce plausible responses and explanations to some of the questions posed, the meeting concluded with a request from the committee to provide additional documentation and clarification on several issues, including the disposal of expired drugs and the reconciliation process. The region agreed to provide this information and was given an additional timeframe of two weeks to finalize their reconciliation with the Ministry of Health.
Region Seven will reconvene with the PAC on August 5. The purpose of Monday’s meeting with the Region Seven agency was to examine the Public Accounts for the fiscal year ended December 31, 2019.
