…claims it did no wrong, was following procedures

THE National Industrial and Commercial Investments Limited (NICIL), the Privatisation Unit, on Monday chided Kaieteur News for an article published on Sunday, October 18.NICIL, via a press release, claims that the article, titled ‘Forensic audit recommends criminal charges against Brassington,’ and utterances by Junior Finance Minister Jaipaul Sharma are

premature, as it believes the assertions by Sharma were based on an “unreleased preliminary audit report of Mr. (Anand) Goolsarran.”
“The facts contained in the Report will ultimately show that there has been no evidence of illegality, fraud or corruption by NICIL,” the statement said.
The preliminary report, NICIL added, fails to allege any personal enrichment of officers or directors of the entity which includes Chief Executive Officer Winston Brassington. “NICIL maintains that all actions taken by NICIL over the years on matters identified in the preliminary report, were on the lawful authority of its Boards (Privatisation Board or NICIL Board) and/or Cabinet.”
The preliminary report, the statement said, “does not allege corruption or fraud by the CEO.” The entity refutes the position taken by forensic auditor Anand Goolsarran on the grounds that NICIL has “substantial legal advice” that says that Articles 216 and 217 of the Constitution has no bearing on NICIL. NICIL argued that if the identified articles of the Constitution were applicable, then NICIL would “be in violation of the Companies Act and NICIL’s own Articles of Incorporation and Bylaws.”
The entity maintains that NICIL does not fall within the definition of ‘Guyana’ as stated in Article 232 (1) of the Constitution and Section 5 of the Interpretation and General Clauses Act Chapter 2:01. “As a consequence, Article 216 of the Constitution is not applicable to NICIL.”
Goolsarran recommended that “disciplinary action be instituted against all those who were complicit in the violation of Article 216 and 217 of the Constitution, including the Board of Directors of NICIL, the former Minister of Finance and the previous Cabinet, as provided for under the following sections of the Fiscal Management and Accountability (FMA) Act:(a) Section 48—Misuse of public moneys; (b) Section 49-Liability for Loss of public moneys; and (c) Section 85—Liability of Official.”
Article 216 of the Constitution states that “all revenues or other moneys raised or received by Guyana (not being revenues or other moneys that are payable, by or under an Act of Parliament, into some other fund established for any specific purpose or that may, by or under such an Act, be retained by the authority that received them for the purpose of defraying the expenses of that authority) shall be paid into and form one Consolidated Fund”.
NICIL’s position on Goolsarran’s recommendation is different. The entity hold strong that it has had “clean” audit opinions from 2002 to 2013 and that is evidence that the Auditor General (current) does not consider NICIL to be in violation of Articles 216 and 217. In 2001, NICIL said it received advice from Ram and McRae that “clearly showed, that NICIL prior to 2002, had violated the Companies Act and its financial statements were not prepared in accordance with applicable accounting standards.”
Ram and McRae the press release added: “Assisted NICIL is preparing its accounts in proper accounting form, after which it received a clean audit opinion. At no time, did NICIL receive advice that it had to deposit all of its revenue into the Consolidated Fund.” NICIL believes that if it in contravention of Articles 216 and 217 then “all state-owned entities would be similarly guilty” as it operates like any other company under the Companies Act.
“Further, this would defeat the very purpose of having government conduct commercial business via companies,” the statement added. Also, NICIL stressed that there is no legal precedent or court ruling that suggests that NICIL is “is obliged to deposit its revenues into the Consolidated Fund or that Articles 216 and 217 are applicable to NICIL.”
Goolsarran in the preliminary report recognised that from 1991 to 2001, NICIL transferred $3.415 B to the Consolidated Fund. “Between 2002 and 2012, over $12 B was paid as dividends from NICIL to the Consolidated Fund. Mr. Goolsarran also recognises that the accounts of NICIL, prior to 2002, were “qualified” audit opinions, but for every year since, NICIL has received “unqualified” or “clean bills of health” audit opinions,” the release stated.
NICIL believes that Goolsarran, notwithstanding the facts before him, has continuously accused NICIL of being in violation of Articles 216 and 217 of the Constitution when all funds were retained and invested.
“This argument, which contradicts the facts as stated by Mr. Goolsarran, is the basis of the above recommendation by Mr. Goolsarran.” NICIL has been in receipt of the draft preliminary audit report that covers 13 years of business and is in the process of responding. The entity said it understands that the draft report was only communicated to NICIL through its Chairman Dr. Maurice Odle. Goolsarran, the statement said, is awaiting NICIL’s responses so that he could finalise the document.
“NICIL further understands that once the formal draft is submitted to the government (via the
Minister of Finance), NICIL will be able to respond to the final version of the report, and its response will
accompany the final report,” the statement said. However, given the statements attributed to the Junior Finance Minister Sharma, NICIL deemed it necessary to respond.

“It is unfortunate that the protocol for addressing the forensic audit is not being followed, and sensational public statements are being made without balance, much to the detriment of a fair and balanced audit and audit process. Incendiary accusations without specificity as to wrong doings lack any semblance of objectivity and is one form of prejudicing a fair and balanced audit process. Such actions are more akin to a “witch hunt” than to a fair, independent, impartial, professional, and objective audit process,” NICIL’s statement said.