–AG’s report shows

HUNDREDS of millions dollars are still owed to the public coffers by contractors who were overpaid under the previous APNU+AFC Government.
However, Auditor-General Deodat Sharma, in his 2021 report, has noted a significant reduction in overpayments to contractors. In fact, the AG said that even in the few instances where contractors were overpaid by ministries in 2021, swift efforts were made to recover the sums.

This has resulted in, at the time of his reporting, no outstanding sums representing overpayment from ministries. The other sums still to be recovered were those overpaid by the regions.
Sharma reported that a total of 411 contracts were examined in respect of the ministries and regions for the year under review, and that overpayments amounting to $52.996 million were made on measured works on 37 contracts administered by ministries and regions in 2021.

The AG said: “Sums totalling $14.853 million were in relation to ministries of which the entire amount was recovered at the time of reporting.”
He added: “Sums totalling $38.143 million was in relation to regions of which $21.046 million still remained outstanding in respect of four projects for Regions Seven, Nine and 10.”
Contract overpayment in 2020, the year when the pandemic hit, stood at $11.3 million, but nothing was stated in that year’s report about recovery of that sum.

But, in 2019, overpayments amounting to $199.381 million were made in respect of four contracts administered by the Ministry of Finance, Ministry of Public Telecommunications, the Guyana Defence Force (GDF) and the Transport and Harbours Department (T&HD).

Similarly, in 2018, overpayments amounting to $166.076 million were made in respect of measured works on 90 contracts administered by ministries, departments and regions.

Amounts totalling $73.709 million were in relation to the regions, of which $56.528 million or approximately 77 per cent were from Regions Two (Pomeroon-Supenaam), Eight (Potaro-Siparuni), Nine (Upper Takutu-Upper Essequibo) and 10 (Upper Demerara-Berbice). As it relates to the ministries/departments, a total of $92.367 million in overpayments were noted, of which amounts totalling $63.741 million and $8.330 million or approximately 69 per cent and nine per cent were from the Ministry of Public Infrastructure and the Ministry of Social Protection, respectively.

At the time of reporting, in September 2019, a total of $20.041 million was recovered. Most of the sums overpaid, especially under the previous administration, are still to be recovered.
In his 2021 report, Sharma made mention of several cases of overpaid sums still being outstanding.
In the Ministry of Public Works alone, formerly the Ministry of Public Infrastructure, hundreds of millions are outstanding.

Sharma noted that $81.570 million, which represented a contractor’s indebtedness to the ministry, was still not recovered. That matter is before the High Court.
In another instance, Sharma highlighted that the remaining sum of $100 million overpaid on the contract for the upgrading of the road from La Bonne Intention to Beterverwagting, was still not recovered. The total sum overpaid was $120.683 million, of which, $20.683 million was repaid by the contractor.

Another $112 million overpaid on the contract for the upgrading of the road from Beterverwagting to Triumph was still not recovered. The total sum overpaid was $132.649 million, of which, $20.649 million was repaid by the contractor.

The Auditor-General said that some $14.806 million advanced to a contractor for the upgrading of the highway from Triumph to Mon Repos was still not recovered.  In this case, recovery is not possible, as the contracting company was dissolved, and the company won judgement in the matter, thus making the collection of $14.806 million virtually impossible.