–on a day he was running GWI in the office

AN AUDIT into the operations of the Guyana Water Authority (GWI) has unearthed a slew of procedural irregularities and one instance where fictitious bills were allegedly issued under the stewardship of former Chief Executive Officer Shaik Baksh.

The investigation into GWI found that for the period January 2014 to May 2015, a total of $3.9M had been issued to Baksh and employees performing duties as his Executive Assistant, to facilitate official field trips.

But the legitimacy of expenses and field trips could not have been verified, since bills produced did not provide any contact information for the persons issuing same; no other official from GWI was stated accompanying the Chief Executive on the claimed official visits; and the purpose of the visits was not stated.

The report noted that the way bills were presented to substantiate expenses incurred were unsatisfactory. The report observed that there were “like handwritings and formation of letters on bills ‘supposedly’ issued by different individuals. Bills issued from different persons in different locations… showed signs of being from the same book, since the receipts contained one of the above, if not both, and had the same designs.

“Individuals who ‘supposedly’ issued the receipts from one location issued another at a different location. Cash receipt of US$400, equivalent to Gy$84,000 (Ex. Rate @210) dated 05/09/14 and written to S. Baksh from M. Ramgoolan for ‘hire of taxi Piarco – POS San Fernando Chaguanas/POS’ was presented to clear advance of $105,000 taken on 04/09/14 for a visit to the Water Authority of Trinidad and Tobago.

“We were informed that neither the Board of Directors nor senior management was aware of this visit.”

In addition, bills dated December 4, 2014 and totalling $200,000 were proven to be fictitious, as security logs showed that the Chief Executive was at head office instead of the locations claimed.

ELECTIONS DAY
The report added that an advance of $300,000 was issued on April 30, 2015 for visits to Upper Pomeroon region, Santa Rosa and villages in the Moruka sub- region. However, one of the bills presented, totalling $245,000 for hiring of speed boat from Charity to Santa Rosa, Santa Rosa to Moruka return, and Santa Rosa to Mabaruma return, was dated May 11, 2015 – Elections Day, which was declared a public holiday.

According to the report, an advance of $220,000 was requested on May 22, 2015 by Demallea Benjamin, Communication Assistant (acting in the capacity of the Executive Assistant to the Chief Executive at the time) for visits to communities along the upper and lower Mazaruni River and Bartica.

A cheque was prepared and approved on the mentioned date. The Communications Assistant indicated that she collected the cheque, changed same, and gave the cash to the CEO on May 25, 2015.

But on May 29, 2015, the Director of Finance informed that the money was refunded by the Chief Executive, and a receipt, #80324, was issued for same. The reason provided for the cancellation of the trip was that the cash was received too late.

MEDICAL CLAIM
This aside, the auditor highlighted that the Chief Executive’s employment contract dated September 17, 2012 does not provide for compensation for medical expenses; however, an instance was noted wherein monies were reimbursed for a “claimed” on-the-job accident.

“This accident was never reported to the Occupational Health and Safety Officer or the Human Resources Department, nor was there any accident report prepared to justify payments. The total value amounted to $29,000, which was approved by the Management Accountant, S. Tiwari, and paid on April 24, 2015.” the report said.

Under his contract, Baksh was entitled to 22 hours’ security services at his Lot 16 Ixora Avenue, Eccles, East Bank Demerara home, and he hired two private security personnel. This is despite being informed by Human Resources Director Gale Doris that GWI has a contracted security firm which provides this service.

The creation of these two positions was not approved by the board, and the recruitment process was carried out solely by Baksh, who instructed the Human Resources Department to create personnel files, prepare employment contracts and make necessary arrangements for salary payment.

“It should be noted that the two security personnel were paid a basic salary of $44,000 and $16,000 to compensate for overtime ($120,000 per month). This was cost effective (savings of $118,700 per month) compared to $238,700 (2 Baton Security 22hrs@$350 per hour for 31 days) that would have been incurred using the contracted security firm.

“Although these positions were not on the company’s regular payroll or approved contracted positions, approval was granted by the Chief Executive to pay salary increases for 2014,” the auditor noted.

REPORTEDLY OVERSTEPPED AUTHORITY
According to the report, it appears that Baksh used his position to override policies and procedures, and overstepped his authority with or without the approval of the Board. The report noted that there is no evidence in the Board of Directors’ minutes to confirm that Baksh was authorised to use vehicle PPP 9050, which was intended to be used by the Project Manager of Georgetown Sanitation Programme.

Vehicle PPP 9050 was never used on the contract under which it was acquired. The Project Manager and Engineer had to resort to the use of an assigned vehicle from GWI’s vehicle pool, which is shared throughout the company on a first-come-first-served basis. This significantly hampered the work of the Project Manager and Engineer throughout the duration of the contract.

It was also noted that Baksh’s employment contract stated that “gratuity should be paid subject to satisfactory performance”, but there was no evidence that this was done.

In light of the findings, the auditor has recommended that the new Board review the contract of Baksh, to determine whether benefits paid were consistent with his contract of employment; and if not, they should pursue all overpayments.