— 2016 Auditor General’s report

THE Auditor General’s report on the Public Accounts of Guyana and on the accounts of ministries, departments and regions for the fiscal year ended December 31, 2016, highlighted that there have been a number of overpayments on contracts, with specific reference to the ministries of Public Security and Public Infrastructure.
According to the report tabled in the National Assembly on Thursday, overpayments amounting to $82.658M were made on measured works on 98 contracts administered by ministries, departments and regions in 2016.

Of that amount, sums totalling $65.076M and $17.582M were in relation to regions and ministries, or departments respectively. Included in the sum of $65.076M were overpayments amounting to $45.265M or approximately 69 per cent in Regions One, Eight and Nine, while included in the sum of $17.582M overpaid on contracts in ministries and departments were amounts totalling $11.986M and $3.467M or approximately 68 per cent and 19 per cent for the Ministries of Public Security and Public Infrastructure.
Additionally, in the case of the Ministry of Public Infrastructure, there have been several instances of late and non-delivery of items procured.

At the time of reporting, items valued $198.279M were not yet delivered though payments were made to the suppliers. Included in the sum were items valued at $109.851M or approximately 55 per cent which were in relation to the on-delivery of two trucks and three motion scales.
Moreover, the full benefits could not have been derived from items totally as $138.446M that were paid for in 2016 but delivered on various occasions this year. These items were purchased by the Ministries of Public Infrastructure, Public Health and Regions Three and Four and included one newborn haemoglobin system and one mobile car crusher, as well as furniture and equipment.

In the case of un-presented payment vouchers, 451 payment vouchers valued at $374.394M were not presented for audit, of which 433 valued $353.692M or approximately 94 per cent of the total value were in respect of Regions One and Eight.
“As a result, it could not be ascertained whether value was received for the sums involved, and whether it has been used for the purposes intended,” the report stated.
In the area of drug procurement and medical supplies, the Audit Office found that there were 15 inter-departmental warrants totalling $1.838B received by the Ministry of Public Health from the 10 administrative regions for the procurement of drugs and medical supplies.

“Financial returns from the ministry indicated that amounts totalling $1.435B were expended on the acquisition of drugs and medical supplies. Although drugs and medical supplies were received by the regional administrations, the costs were not stated on the documentation that accompanied the deliveries.”
Based on the aforementioned, the Audit Office could not ascertain the value of the drugs and medical supplies received by the 10 administrative regions, while the difference of $403M remained unspent, which included 100 per cent of warranted amounts for Region Eight and 71 per cent for Region Three.

Additionally, it was noted that there was the absence of stores records and according to the report, a number of vital control mechanisms to ensure proper accountability for stock were not in place at the drug bonds or stores of several regional hospitals, including those at Mabaruma, Oscar Joseph, Suddie, Canje and Lethem.
Thus far, investigations into the supply of dietary items for the Kato Breakfast School Feeding Programme, and the discrepancies into pricing items in relation to 60 payments totalling $33.663M made to a particular supplier have begun.
Prices for items purchased were higher than that of similar items purchased by the region from other suppliers, the report noted.

That aside, the Audit Office has concluded an investigation into 23 transactions at the Ministry of Public Security, whereby the receipt of goods and services on 20 transactions amounting to $21.129M could not be verified.
“This matter is currently attracting the attention of the Guyana Police Force,” the report stated, while noting that one employee pleaded guilty to the embezzlement of $0.918M and has since repaid the sum.

Meanwhile, as it relates to the Guyana Revenue Authority, the report noted that a mere 20 per cent or 18, 337 of the 92, 326 self-employed persons filed Income Tax Returns totalling $4.045B. This represents non-compliance by 80 per cent or 73,989 of taxpayers in this category.