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Home Letters

Purchase of tractors by MoAA in year 2020.

Staff Reporter by Staff Reporter
January 17, 2021
in Letters
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Dear Editor

I followed the consideration of the estimates (supplementary budgetary provisions) for the Ministry of Amerindian Affairs. The experience was as incredible as it was reminiscent of the Cricket World Cup affair and the ‘advance payment for rooms to be provided’ by a certain Hotel.

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The Ministry of Amerindian Affairs had an approved budget of $800.000.000: for 2020. In that budget there was provision for the purchase of tractors and trailers for Amerindian Villages. Under examination, the Minister of Amerindian Affairs reported to the committee of supply of the National Assembly that, she planned to purchase one hundred tractors and trailers in 2020.

There was no increase in the selling price of tractors, neither was there any increase in import duties and/or taxes on such equipment.  That could only mean that the Minister did not cause a sum which could adequately cover the purchase of her one hundred tractors and trailers in the substantive budget, which by the way was “an emergency budget”.

On December 30th 2020, the minister sought approval from the National Assembly for $130.000.000: in additional funding to buy these additional thirty tractors to take the total number to one hundred.  Clearly the minister woke up late recognising that she wanted to buy these thirty additional tractors and it never was a case where the original plan was for one hundred to be bought. That’s the first lie.

With three days remaining in the year, the minister confessed to the Committee of Supply that, she went to tender before her supplementary budget was even considered by the National Assembly! In fact “tenders were already opened” before consideration, said the minister in answer to a question.

“The PPP government is efficient and effective and will deliver” said the minister in attempting to suggest that the tender board would meet, award the contract, have it signed, prepare and deliver the cheque to the supplier and take delivery of the tractors and trailers all in three days.  That’s the second massive lie. This is impossible to achieve without breaching the procurement laws.

The questions which now arise, since the tractors and trailers have not yet been delivered to the Ministry of Amerindian Affairs are as follows:

Did the supplier know that s/he or it in the case of a Company know of having been identified to supply these items before advertising?  In this way the supplier would have been in a position to place an order to the manufacturers/dealers in good time.

Since no right thinking tractor dealer will stock one hundred tractors and trailers at any one time, was the mad rush to pass this run of the mill purchase as an emergency transaction to be completed within three days more than meets the eye?

Was this crazed rush to pay a supplier close to half a billion dollars for one hundred tractors in fact a payment in advance?

Was this a case where payment in advance was used as the means through which the Ministry of Amerindian Affairs facilitated the financing of the acquisition of those tractors?

Why did the minister avoid the normal course of business where the supplier purchased the items ordered, supplied them to the purchaser and is then paid?

The fact of the matter is that, the payment was made.  Had it not been made the funds would have had to be deposited into the consolidated fund.  The additional fact is that the tractors and trailers have not been delivered to the Ministry of Amerindian Affairs to date.  Someone at the Audit Office of Guyana may wish to check on the lead time for importation of these tractors and trailers.  This could answer all of the above questions.

The fact that no Amerindian Development (ADF) Project exists raises the bigger, more important question.

The ADF was a project funded by the Kingdom of Norway.  It ended in 2018.  Vice President Allicock, as he then was, had a new phase of the ADF under active consideration. It was not extensively discussed and, therefore, could not have been approved by the time he demitted office. There was obviously no Project Board and no approved annual work plan for the ADF because there was no ADF!

The Minister could not, therefore, reasonably budget for a project which does not exist.  It is against the rules.  There must be a viable and approved project proposal which forms the basis for budgeting.  Implementation logically follows approval of the budget.

The Leader of the Opposition may wish to examine these facts and consider what role, if any, the Committee of Privileges of the Parliament should play in all of this.
Regards
Mervyn Williams

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