Audit say

Despite a court order, Guyana Power and Light Inc (GPL) may never be able to recover the more than $184 million owed by Bill Direct (Guyana) Incorporated for customer payments, according to a 2016 audit, which has found that it was the gross negligence and complicity by GPL’s management and executive officers that has resulted in the loss.

The audit of the company’s operations from November 1, 2011 to May 31, 2015, which was conducted by Nigel Hinds Financial Services, also found that no disciplinary action was taken against any GPL officer in relation to this matter.

According to a summary of the findings, Bill Direct was a Collection Agency for GPL and was responsible for the remittance of customer payments. As at December 31, 2014, it owed GPL in excess of $184 million.

The audit report noted that GPL commenced litigation against Bill Direct on September 21, 2011, with judgment being granted in its favour on January 11, 2012. “It is important to note that although GPL secured judgment against Bill Direct, it is very unlikely that the amount of $184 million will ever be recovered,” the report said.

It stated that the circumstances surrounding GPL allowing Bill Direct to collect customers’ monies and not remitting same to GPL is due to gross negligence and complicity of management and executive officers.

“There is no evidence that GPL has recovered any funds from Bill Direct related to the court judgment, other than the amount of $628,519, when the Court ordered the Bank to pay over monies to GPL held in two accounts maintained by Bill Direct at the Bank,” the report said.

The report later explained that on February 4, 2008, GPL and Bill Direct entered into an agreement, which made Bill Direct an authorized collection agent of GPL. Bill Direct operated in this capacity until September 11, 2013, at which time GPL terminated its contract when the company failed to remit collections to GPL in excess of $184 million. This sum excluded legal costs incurred to recover the sum.

Bill Direct, the report said began breaching its Contractual Agreement with GPL from as early as 2008. It J u su w a ti B a $ e c

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