House approves $1.4B supplementary provision
– which includes $1.1B advance from Contingencies Fund

THE National Assembly yesterday approved supplementary funding to the tune of $1,474,960,454 to meet additional expenses for various agencies that were not anticipated in the 2013 national budget. Financial Paper 4 totalled $1,062,179,646, while Paper 5 amounted to $412,780,808.

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Finance Minister Dr. Ashni Singh moved the consideration of a $1.1B Supplementary Financial Paper which reflects advances for current and capital expenditures made from the Contingencies Fund for the period Nov. 6 to Dec. 31, 2013.
Responding to criticisms from APNU Shadow Finance Minister Carl Greenidge, Minister Singh made it clear that all the necessary laws have been adhered to in submission of the paper to the National Assembly.
Throughout the debate, Greenidge maintained that the Supplementary Financial Paper reflected an ‘abuse of the Contingencies Fund’, but the Finance Minister reiterated that Greenidge’s characterisation was incorrect and that ‘all aspects of the law’ relative to Supplementary Financial Papers have been adhered to.
“They are in full conformity,” he retorted.
According to the Finance Minister, the monies have been expended on legitimate needs.
The listed expenditures on this paper are in relation to additional electricity subsidy to the Linden Electricity Company Inc (LINMINE) and Kwakwani Utilities Inc; to the clean-up campaign in Georgetown; to payment of additional stipends and tuition fees for Government of Guyana-sponsored students; to execution of additional drainage and irrigation works; to providing additional support to the Transport and Harbours Department; and to the clean-up exercise at schools within the Georgetown District following heavy rainfall, among other things.
A provision for providing assistance to the Philippines following typhoon Haiyan; and to Somalia, St Vincent and the Grenadines, St. Lucia and Dominica was also included on the paper.
Greenidge referred to the Fiscal Management and Accountability Act and said much is left to be desired, considering the stipulations of the Act.
The Finance Minister said the amounts, recipients and purposes of the expenditure were clearly listed on the document being considered.
Greenidge and other Opposition Members of Parliament (MPs) questioned the justification for the costs, particularly in relation to the Constitutional criteria to justify advances from the Contingencies Fund.

LINDEN ELECTRICITY SUBSIDIES
Greenidge claimed that details of the additional sums for the subsidy to Linden Electricity Company Inc. (LINMINE) and Kwakwani Utilities Inc were inadequate.
He also questioned the ‘cost areas’ on which the $276 million was being expended; but the Finance Minister explained that his ministry does not allocate monies to a particular “cost centre”, but that the companies invoice the ministry based on the generation and supply of electricity to Linden and the neighbouring areas – a process subsidised by the Government. He added that the invoicing is done on the basis of an agreed formula. According to him, disaggregation of the cost will be available from the individual companies themselves.
Dr. Singh added that the cost was included in the supplementary paper, since the level of consumption cannot be anticipated with “perfect foresight”, and hence the monies were needed – an addition to the subsidies approved under the 2013 Budget.
“There is a volume variance and that is the base of the supplementary provision,” he said.
Greenidge argued that the shortfall has to be examined closely to justify the cost.
“This is a blanket cover,” he said.
The Shadow Finance Minister contended that the expenditure ought to have been anticipated, given that subsidies to areas in Region 10 have been given well over the past five years.
Acting Deputy Speaker, Bibi Shaddick, intervened and called for the additional information to be supplied to the House by the companies, to ensure that MPs have a “full picture” on the matter.
Prime Minister Samuel Hinds, in his contribution to the subject, stated that the invoice was first sent to his office for approval before being forwarded to the Ministry of Finance.
“I am confident that the invoicing is in accord with the agreement,” Pm Hinds said, and reiterated Government’s commitment to providing additional details, as required.

COUNCILS’ HELP
The allocation of monies to cover expenditure for the clean-up campaign in Georgetown and support to the Linden Municipality also attracted debate.
Greenidge questioned what made the expenditures “urgent and unanticipated”, as are stipulated in the criteria for advances from the Contingency Fund.
Minister within the Ministry of Local Government, Mr Norman Whittaker explained that $9.2M was requested by the Linden Municipality to meet wages after the body had found itself with a shortfall in its collections.
He added that $15M covered the clean-up campaign in Georgetown after the City Council reported that they had insufficient resources to independently undertake such an exercise.
Greenidge argued that irregularities in collections should have been anticipated, and he reiterated that the costs were not anticipated expenditure.
His comments were met by heckling on the Government benches, “Paying wages is not urgent.”
Whitaker made it clear that, at the time of the last budget, the excess expenditure was not catered for; and based on the request by both bodies, the allocation for support was made.
“The municipalities get set subventions for identified projects, other projects from rates and taxes, and that fell short and we were called in to support the municipality to meet its responsibilities,” he said.
Greenidge charged that the explanation was unacceptable.
“This explanation that the minister gave (about) humanitarian concerns is very touching, but the explanation does not justify urgent expenditure,” he said.
Whittaker committed to providing the details of the expenditures.

GDF EXPENSES
An allocation of $237M was made to the Guyana Defence Force (GDF) to cover costs of vehicle spares and services, transport and travel. Equipment maintenance and dietary needs were another focus of some contention.
A Partnership for National Unity’s (APNU) Winston Felix questioned the spending, in particular the equipment maintenance and the dietary expenditure.
Junior Finance Minister, Bishop Juan Edghill, argued that the terrain in the interior warrants the need for the expenditure on maintenance, and the need for the GDF’s operations to continue unhindered, justify the urgency of the expenditure.
He added that accidents are not anticipated, and the provisions on the supplementary paper conform to the section of the law which provides for unanticipated and unforeseen expenditures from the Contingency Fund.
APNU’s Jaipaul Sharma called for the monies to be spent on road works to avoid repeated expenditures on equipment maintenance.
He also raised several operational questions, which were not allowed, given the consensus from the Acting Deputy Speaker and Government MPs that those are issues that should be dealt with at another forum, given their implications to national security.
Sharma also questioned the allocation for dietary need, a question that attracted much heckling, “You gon starve the men?”
Edghill stressed the genuine need for the allocation.

CARIBBEAN SUPPORT
Another major issue among the provisions on the supplementary paper which attracted debate was the decision of Government to allocate monies for support to the Philippines following typhoon Haiyan; Somalia; and St Vincent and the Grenadines, St Lucia and Dominica – Eastern Caribbean countries that were badly hit by torrential rains in December.
Greenidge questioned within which framework the support was being provided, and on what basis the amounts were determined.
Foreign Affairs Minister, Ms Carolyn Rodrigues-Birkett, in response, noted that the $69.3M would be deposited into accounts set by the individual Governments of the countries.
She added that the determination was made by the Government on the basis of affordability, and in the case of the Eastern Caribbean states, reports from the Caribbean Community (CARICOM) and the Caribbean Disaster Emergency Management Agency (CDEMA).
The latter provided a needs analysis, which was made public in early January.
CDEMA’s announcement was followed by Cabinet’s approval of the transfer of some US$275,000 to St. Vincent and the Grenadines and St. Lucia.
The countries were hit by the torrential rains and high winds which caused deaths and severe damage to property and infrastructure over the period December 23 to 25.
Greenidge maintained that the supplementary paper tabled by the Minister of Finance reflects an abuse of the Contingencies Fund.
At end of the debate, the Committee of Supply approved the supplementary paper and it was passed in the National Assembly.

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Parliament yesterday also approved $413M in extra budgetary allocations with the largest allocation of $258M going to support drainage and irrigation (D&I) works.
Dr Ashni Singh piloted Financial Paper No.5 for 2014 through the House as a supplementary provision on capital estimates for the period ended December 31, 2013.
The sum included $97M for support for a low income housing settlement programme and $58M for a justice improvement programme.
Minister of Agriculture Dr. Leslie Ramsammy said the sum of $258M would be used for additional D&I works including construction of control structures, gates, culverts, bridges, pump stations and rehabilitation of channels and consultancy services under the Agriculture Export Diversification Programme.
The majority of the D&I projects are to be done at Canals Polder # 2 in Region 3 (Essequibo Islands/West Demerara) and comprise cleaning of culverts and fabrication and installation of control gates, construction of culverts and revetments and rehabilitation of channels in that area at a total cost of $149M.
Additionally, Dr. Ramsammy said $58M will be spent on consultancy services for Agriculture Health and Food Safety Services and approximately $50M on the construction of a pump station at Patentia in Region 3.
Minister of Housing and Water Mr. Irfaan Ali disclosed that the funds for the low income settlement programme will be used to upgrade roads, construct core homes and supply materials and labour for the construction of homes under the hinterland pilot component.
The sum of $53M will be used to upgrade roads at Parfaite Harmonie in Region 3 and Amelia’s Ward in Region 10 (Upper Demerara/Berbice); $31M for the construction of core homes at Ankerville and Fort Ordnance Frontlands in Region 6 (East Berbice/Corentyne) and Recht-Door-Zee in Region 3 and $13M on the supply of materials and labour for the construction of houses under the hinterland pilot component.
The communities to benefit from the hinterland pilot component are Oronoque in Region 1 (Barima/Waini), Westminster in Region 3, Bath and Onderneeming in Region 5 (Mahaica/Berbice), Manawarin in Region 8 (Potaro/Siparuni) and Annai, Apoteri, Massara and Whitewater in Region 9 (Upper Takutu/Upper Essequibo).
Minister of Legal Affairs Anil Nandlall said the sum for the justice improvement programme will be utilised to purchase furniture and equipment to enhance the institutional capacity of the Court of Appeal, the Commercial Court, the Director of Public Prosecutions Chambers, the Ministry of Legal Affairs, establishment of a Law Revision Department and rehabilitation of court rooms among others.
Of the $57M approved, the largest sum of $24M is to be spent on the purchase and installation of a voice amplification and recording system and furniture and equipment for the Court of Appeal, the Commercial Court and the Criminal Justice Court.
Ministers Ali, Nandlall and Ramsammy averred that the additional expenditures were not expected to adversely affect the delivery of the Government’s programmes and policies for the year 2013 as envisaged in the 2013 financial plan.
The requests for supplementary funding were questioned exhaustively by the combined Opposition before being approved.

(Vanessa Narine and Clifford Stanley)