REGIONAL Executive Officer (REO) of Region Two (Pomeroon-Supenaam), Rupert Hopkinson, has defended his council’s decision to use funds from the region’s current allocation to execute capital projects.

Responding to audit queries before the Public Accounts Committee (PAC) on Monday, Hopkinson maintained that at the time the decision was made, the council had very little knowledge of the breaches of the regulation and that the move was simply to satisfy dire needs in the community. “We were all caught up in the fact that we saved a lot of money and so we each said that this is what we want to have done. We saved $250 million and so I can recall that the head of the programme said I would like to have this done and all decided this is how we are gonna use the money,” Hopkinson told the PAC.

The projects undertaken, and which were under review by the audit office, include the construction of a bus shed at Dartmouth, work on the Anna Regina Health Centre, the construction of two fences at Unity Park Phases one and two, construction of a seating area in Cotton Field and a Landing at Liberty, Pomeroon. He said the council seeks pardon for any contravention of policy on the grounds that the region saved some $500 million from 2016 to date.

Finance Secretary of the Ministry of Finance, Hector Butts, said the use of current allocations to fund capital projects is acceptable if it is authorised by the minister. The funds were taken from the region’s 2017 savings of $250 million, following completion of all budgeted, capital and current projects. The council said that the savings, which facilitated the emergency projects in question, were made possible through responsible spending and prudent management controls by the regional administration.

It said the research found that in the past, such savings which resulted from unrealistic but realistic but deliberate estimates for requirements such as fuel, maintenance, dietary, purchasing of materials and or supplies were utilised in government’s interest.
It went on to say that the large amounts of payments made to the highest-paid contractors during the years 2010- 2015, should not only be a concern of the PAC, but must be a reason for a swift audit.

Butts also said that the misallocation of funds by the regional administration would be dealt with at the level of the Ministry of Finance. A special audit done by the Auditor General (AG)’s office had discovered that the region was utilising current allocations to fund capital projects. “The use of current allocations to fund capital projects is only acceptable if it is authorised by the minister,” said Butts during the PAC meeting on Monday.

According to the audit, the money to fund the capital projects was taken from $250 million of the region’s 2017 savings. The finance secretary was critical of the region’s decision to spend in such way, noting that it was a breach of the law. He advised that Hopkinson, who is in charge of the region’s budget agency, should have sought the authorisation of the Minister of Finance before using the money. A way forward on the matter would be decided after the Ministry of Finance has reviewed the findings of the audit, said Butts.

Members of the PAC, Juan Edghill, Nigel Dharamlall and its Chairman, Irfaan Ali, were also displeased with the misuse of funds. The audit revealed that there were breaches in payments for incomplete work, awarding of contracts and even misallocation of funds for several projects. These included rehabilitation work on the Anna Regina Health Centre, the construction of two fences at Unity Park, a landing at Liberty Pomeroon and a bus shed at Dartmouth.