Stern warning for Permanent Secretaries as PAC asks Home Affairs Ministry to ‘go and come again’

Revelations that a Permanent Secretary (PS) broke procedures under the former APNU+AFC government to accept a cheque as a bond from a contractor in 2017 was met with stern warnings from the Finance Secretary and Accountant General as the parliamentary Public Accounts Committee (PAC) examined the 2017 Audit Report on Monday.

But after persistent questions about the transaction could not be adequately answered by the PS of the Ministry of Home Affairs Mae Thomas and former PS of the then Ministry of Public Security Daniella McCalmon, the PAC, out of frustration, asked the agency to “go and come again.”

Issues arose when PAC members questioned a $16.9 million contract awarded to Caribbean Medical Supplies for the procurement of drugs and medical supplies for the Guyana Forensic Science Laboratory.

The full amount was paid to the contractor, however, at the time of reporting in 2018, materials to the value of $10.818M were still to be delivered.

As questions arose, the ministry confirmed that only $14.7M in supplies were delivered with the contractor repaying $2.9 million.

This is after there was an initial delay between 2017 and 2018 with the supplies being delivered in 2019.

During this time, a bond was requested but no one could immediately say who requested the bond. It was also revealed that the bond was lodged by way of two cheques but again no one could clarify if it was a manager’s cheque or a personal cheque.

The audit office had also observed that one of the cheques was “stale-dated.”

It was at this point that it was agreed that the holding of cheques were against the standard operating procedures as outlined in procurement laws. Such a bond should come directly from a banking or otherwise financial institution like an insurance company.

Accountant General Jennifer Chapman observed that it was an unusual practice with officers at the Home Affairs Ministry later claiming it was an isolated incident and it should not have happened.

“I want to caution Permanent Secretaries to please comply with the SOPs.”

“If we continue, government will lose funds because should we have needed to encash the cheques later, the provider may not have had the cash… please desist,” Chapman said.

She was supported by PAC member Gail Teixeira and Finance Secretary Sukrishnalall Pasha.

Pasha also pointed out that the ministry had no authority to decide on its own to make a 100% advance payment without the approval of the National Procurement and Tender Administration Board (NPTAB.)

The PAC became further frustrated when former PS McCalmon could not provide details on the transaction, saying she had no pre planning meeting and the file was not available to her.

“All I know is that 50% of the money was paid and after deliveries were delayed then the bond was submitted and the final payment handed over,” she said.

After repeated promises to provide the information at a later date and PS Thomas as the Chief Accounting Officer shifting almost every question to her subordinate officers, Member of Parliament Vishwa Mahadeo introduced a verbal motion to have the agency “go, sort themselves out, and come again.”

Minister of Public Works Juan Edghill supported the motion but said McCalmon was also to be blamed for not requesting the information and for not being adequately prepared.