$72M in cheques written to ghost suppliers

GUYANA - In a clear breach of financial regulations, Region Six, East Berbice/Corentyne Democratic Council, has been preparing millions of dollars in cheques for supplies no one even knew existed. During the statutory Public Accounts Committee (PAC) meeting at Parliament chambers on Monday, the issue was extensively discussed and PAC Chairman Irfaan Ali sought answers to the worrying development. The irregularity was found in 2015 when the Auditor General’s Office conducted a financial audit of that Region’s affairs. The Region is still in receipt of a number of those cheques and was advised to send them to the Accountant General’s department to be deposited into the consolidated fund. Additionally, the Region has been preparing these cheques based on the local tender board approval of projects rather than invoices provided by suppliers for supplies that should have been provided. The Deputy Regional Executive Officer who is responsible for finance was asked to explain why such breaches occurred. Ali asked the DREO after the Tender Board awarded the contract, what were the criteria used to prepare the cheques. The DREO explained that it was upon the Tender Board’s award that the cheques were prepared. “You can’t cut a cheque based on a Tender Board award,” Ali lamented. Strangely these cheques were prepared in advance of the expected delivery of the supplies and were made out for the full amount. Ali was baffled about the reasoning behind such a move. “So if you cut a cheque for $8M and the man does $2M dollar work what happens there?”

The regional officials explain that efforts will be made to update and return the cheques so that they can be deposited into the consolidated fund.

(kaieteurnews.com)