OVER $21M in 356 advances paid out from what is being dubbed as a “slush fund” bank accounts of Region Two’s Regional Democratic Council (RDC) are still to be accounted for as regional officials appeared before the Parliamentary Public Accounts Committee (PAC) to answer questions on Monday.

The bank accounts are three special-project accounts at Republic Bank Limited for economic affairs (Reserve Fund), Economic Project (State House), and Westbury. The accounts were used to deposit revenue made by the region through various activities and events.

The regional officials appeared before the PAC as an examination of 2017 and 2018 Auditor General Reports continued with spending.

The advances were used for several things, including travel; meals; miscellaneous expenditures; works in lieu of salaries; activities and celebrations; reconnection of water and electricity; replacing two parts for the REO’s laptop; in lieu of trench cleaning; accommodation; medical care; relocation of staff; advertisements and purchase of items, among other things.

However, the use of the funds has raised eyebrows, given that the deposits were not being utilised for their intended purposes and given that monies are already allocated in the government subvention to the region for many of the things listed.

It was also revealed by the Regional Executive Officer (REO), Susannah Saywack, that at least one of the signatories to one of the accounts is no longer with the RDC.

Additionally, though persons should not be issued subsequent advances until they have cleared the previous ones, in some cases persons were given as many as 11 unaccounted advances, with some of the advances dating back to 1995.

“We are recognizing that a practice was inherited and it was not questioned, but today it is being questioned and we recognize that it needs to be fixed,” PAC member Ganesh Mahipaul commented.

He further added that: “I would like to recommend that the accounting officer and her team along with the Accountant General, and Finance Secretary, and other financial people within the system clarify, fix and put measures in place so as to not have a repeat of these findings in the Auditor-General’s Report going forward.”

Saywack noted that some of the advances were also made out to staff members.

“That’s unacceptable,” PAC Member and Minister of Governance Gail Teixeira commented, while she placed on record that the monies seem to be used outside of the purposes intended, amounting to a “slush fund.”

The REO was requested to provide the PAC with the names of the individuals and reasons for the requests for the funds, “So we can have an understanding if the fund is being utilized for its intended purpose,” Teixeira said.

Teixeira said that the significant issue is that the monies are not declared as revenue at the end of the year and then form part of the regional budget. In contrast, monies are not turned over to the Consolidated Fund as expected, raising serious concerns.

It was noted that similar such accounts are also held in other regions, particularly the hinterland regions; however, Auditor General Deodat Sharma pointed out that this issue of outstanding advances is not prevalent across the board.

“I think Region Nine had a lot advances outstanding but not in Regions One and Six,” Sharma said.