-Local Gov’t Minister

In an effort to ensure citizens receive maximum benefits from financial resources entrusted to the Regional Administration by the government, rigorous accounting guidelines will be implemented this year. Minister of Local Government and Regional Development, Kellawan Lall, at a media briefing yesterday, stated that Regional and Neighbourhood Democratic Councils are expected to undergo aggressive scrutiny to ensure they comply with Tender Board Procedures and the Procurement Act.

“We will be monitoring these Regional Democratic Councils (RDCs) aggressively to ensure full accountability , so that tax-payers’ money is spent in a responsible manner. We must get our money’s worth,” Minister Lall said.

Commenting on the financial irregularities relating to Regional Executive Officer (REO) Shafdar Ali, Minister Lall noted that based on the perusal of certain documents he has requested that an investigation be carried out.

The minister said he scrutinised several transactions in the Integrated Financial Management Accounting System and noticed that cash amounting to $100M was paid to only one supplier.

“Every now and then the transactions are scrutinised and we would sometimes notice red flags indicating something out of the normal; but there are literally thousands of transactions from the various regions and we don’t always have the time to check,” the Local Government Minister detailed.

He mentioned that the Auditor General has submitted a preliminary report with findings and recommendations, and is also conducting further investigations.

Among the findings are a total breakdown of internal controls, collusion between the REO and the expeditor, breaches in the procurement process, payments made for undelivered supplies and inflated payments.

The Auditor General has since recommended a police investigation and disciplinary action against the REO.

Minister Lall named Nanda’s Parlour and General Store; Narendra Latchman who was paid $74M; and E. Lall, who, he said, had sole monopoly on all contracts in Region Four.

He added that Nanda’s Parlour is not known to be a reputable supplier of the types of goods required by the region but would concoct quotations to win contracts.

It won contracts to the tune of $24M for supplies to schools, hospitals and electrical equipment.

“It’s inconceivable to think that the REO didn’t realise that a single supplier was delivering everything when he signed more than 100 requisitions.”

The Local Government Minister remarked that incidents of split contracts were also found where the value of service is reduced to figures below the stipulation so as to escape tender board procedures.

Minister Lall said the persons responsible for monitoring the system must be more vigilant in detecting anomalies.

“We didn’t micro-manage to see who was stealing money; but we will be monitoring all 81 councils to ensure that reputable people are doing these quotations and it must be done in accordance with tender board procedures.”

The ministry is in the process of examining the other regions and hopes that no replication of mismanagement would be found. (GINA)