In September 2010, history was created when 82 acres of rice was being harvested in the village of Moco Moco , Rupununi, for the first time. However, five years later the stalled project’s bank account had a mere G$5,413.This was one of the financial irregularities which were uncovered by Nigel Hinds Financial Services in a forensic audit of the Guyana Rice Development Board (GRDB) for the period November 2011-May 2015. The firm has recommended a full investigation into the project and its associated expenditures.
The ambitious rice project, which was spearheaded by former Deputy General Manager of the GRDB, Madanlall Ramraj, was viewed at the time as a transition from subsistence agriculture to commercial agriculture, moving the farming methods in the area to another level. It was part of a multi-million dollar Hinterland Rice/Bean project adopted by the Ministry of Agriculture under the previous government.
The $128M undertaking was done in partnership with the Spanish Agency for International Cooperation for Development and Government of Guyana, the Agriculture Ministry and the Guyana Rice Development Board (GRDB).
For three years duration post -2010, it was aimed at developing savannah agriculture in an effort to increase crop production and enhance economies in the villages. The plan was to use the project as a means of providing support to indigenous communities of the Rupununi. However, the project fell by the wayside following several challenges, including weather.
According to the audit report, funds credited to a Republic Bank Account were not clearly documented and as such the monies were assumed to be from the Spanish Government Assistance Programme. The initial funds amounted to G$43.7M, and this sum was in line with the first tranche as stipulated by the memorandum of understanding (MOU) for the project which was signed between the Governments of Guyana and Spain for the sum of US$220,570 allocated for the project.
According to the auditor, “There were no further monies paid into this account {Republic Bank Account } after August 2010 , despite GRDB charging a 1% levy as from May 2012 on all rice exported to the Venezuela market , which was supposed to support the Moco-Moco project”.
The auditor went on to state that the second tranche as stipulated in the MOU, in which the sum of G$49.8M, which translates to US$249,064, was allocated but has not been accounted for in the Moco Moco project bank account. The auditor noted too that spending from the bank account continued beyond the expiry date of the MOU. “The balance as at July 31, 2015, was G$5,413, the auditor stated.
The rice venture at Moco Moco started in 2009 as part of the Hinterland Rice and Beans Project. Last year, reports from the region suggested that equipment failure, coupled with the El Nino dry weather conditions negatively hit the project. At the same time, villagers continued in their attempts at planting the staple.
In October 2016, the GRDB via the Ministry of Agriculture’s website noted that it plans to facilitate the increased production of rice in the Rupununi from approximate 25-30 acre cultivations, gradually to 50 acres and then 100 acres. To achieve this goal, GRDB said that it will adopt a two-pronged approach; install the necessary infrastructure, then proceed in actual increased cultivation.