Audit Office probe of alleged GUYOIL kickback scheme complete
The audit requested by Finance Minister Dr Ashni Singh after procurement irregularities surfaced at the state-owned Guyana Oil Company (GUYOIL) is complete and a draft report is being prepared, according to Auditor General Deodat Sharma.
“In terms of the contractual parts of it, you look at how it was awarded, if it was according to the Procurement Act etcetera... that part has been completed and a draft report will be completed shortly,” Sharma told Stabroek News on Friday.
He explained that his mandate pertained to investigating “whether a particular supplier had a contract or did not have a contract to supply fuel for GUYOIL and whether the proper procedures were followed.”
Asked if the investigation looked at allegations made by Aaron Royality Inc (ARI) that if kickbacks were given to officials of the state company then it would
get a contract, Sharma said it did and added that his office would request police investigations if it believed it was warranted.
“We would recommend the police to come in and do that...,” he explained of cases involving allegations against a particular party.
In other instances, he pointed out that the process was somewhat different as if “there is a specific allegation for bribe and corruption, normally we would work along with the police.”
Following the allegations of procurement irregularities, Singh had invited the Auditor General to investigate and sounded a warning that corruption will not be tolerated.
The allegations were made by proprietor of ARI, Jayson Aaron, who claimed that the company had been left with a large quantity of fuel on hand after a commitment to purchase was made by GUYOIL officials. He also claimed that he had evidence of the commitments by officials of the company who also tried to solicit kickbacks.
Aaron also released audio recording and images of WhatsApp conversations he claimed to have had with officials.
GUYOIL’s Board has since said that while ARI was one of several companies it had been in discussions with, it had not contracted the company to supply fuel.
Late last month, Aaron was arrested and questioned for allegedly falsifying the series of WhatsApp messages he released. He has since been released on $100,000 bail and that matter is pending.
Additionally the vessel which was said to be carrying ARI’s fuel for GUYOIL is reportedly in the custody of the GDF Coast Guard. The vessel reportedly loaded the fuel in Venezuela.
Over at GUYOIL, Chief Finance Officer of the state-owned company Shawn Persaud and board member, Akanni Blair were removed from their positions as the duo were found to have had “inappropriate” contact with the importer in question. That was announced by President Irfaan Ali during a press conference.
Ali had said that there was no evidence of fraud as preliminary findings had found that there was no contract between the company and Aaron.
But the President’s position was heavily criticised by AFC General Secretary and Chairman of the Public Accounts Committee (PAC) David Patterson, who stressed that it was not for Ali to declare that no fraud was committed.
“To have evidence of a blatant attempt to defraud a state agency to such an extent and to have a response that is a simple tap on the hands is unacceptable. The police should be investigating. The individuals should possibly be charged and go through the same kind of interrogation [used against former members of the APNU+AFC administration] until it is proven that no crime is committed,” party executive Cathy Hughes had added, before explaining that it shows that crime in Guyana is not prosecuted based on the merits of the case but on the identity of the accused.