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Leader of the Opposition, Mr. Aubrey Norton has lambasted the 2023 Budget which was passed on February 2nd with the People’s Progressive Party/Civic (PPP/C) using its 33 parliamentary seats and one from the joinder Opposition small parties.
According to Norton, at his press conference on Thursday, the government has produced a Budget without measures to address poverty, the high cost of living, high inflation, and the high level of unemployment.
The focus of the budget is on infrastructural development, which is needed, he said, but is being done in a way to facilitate widespread corruption.
And in the light of the foregoing, the Opposition Leader stated there is need for strict financial oversight to minimise fraud and waste, and public procurement system that ensures equity and rewards a wider range of citizens in our society.
The government has allocated G$388 billion in the 2023 Budget for capital expenditure which will be spent on infrastructure projects, such as roads and public buildings.
But Norton warned that Guyanese should be aware that almost all of the G$388B will be filtered through the public procurement system – in other words, through contracts to be awarded by government ministries, state agencies, and regional democratic councils.
Against this background, he stated, there is a need for the government to put in place measures: (a) to minimise corruption and financial mismanagement, and (b) to ensure equitable allocation of contracts across groups in the society. To this end he outlined the undermentioned: –
(a) Measures to minimise corruption and financial mismanagement
The Coalition delivered quality infrastructure at a much lower cost than the present PPP regime. The revelation by Member of Parliament David Patterson, during his budget presentation indicated that PPP road contracts are costing taxpayers $40M per km more than under the Coalition government. This highlights the crisis of corruption and financial mismanagement in the public procurement system at present. This should not be left unchecked since the crisis will worsen. The Guyanese people will get fewer and fewer returns relative to the money invested in capital projects. In public spending, citizens must always demand cost minimization, efficiency (or output maximisation), and effectiveness (or full attainment of the intended results). This does not occur under the PPP.
The government has thus far failed to inform the nation of any intention to stem the hemorrhaging of public funds through fraud and financial mismanagement. From all indications, it seems more comfortable being a facilitator and co-conspirator in the abuse of the people’s money as the government pursues its policy of enriching its elites, families, friends and favourites.
The people of Guyana must therefore raise their voices in outrage. There must be greater oversight and accountability. The Public Procurement Commission must get off its rump and fulfil its mandate. The Guyana Constitution (Article 212 AA) empowers this Commission to “monitor the performance of procurement bodies with respect to adherence to regulations and efficiency in procuring goods and services and execution of works” and “to investigate cases of irregularity and mismanagement, and propose remedial action.” As an independent constitutional body, the Commission must not allow the government to thwart the fulfillment of its responsibility to the people. It must urgently get its act together.
In addition, the Office of the Auditor General must conduct value-for-money audits for large projects—not only after construction, but also during construction. There are now too many infrastructure projects which are too expensive, behind schedule, poorly constructed, and in the hands of contractors with little or no experience. A classic case of this is the Bamia/Amelia’s Ward Primary School contract, awarded to persons from the entertainment industry with no experience in construction. Their only claim to fame is their close links to the corrupt PPP regime.
The APNU+AFC during the budget debate 2023 advocated for a People-Centered Development Strategy in which the resources of our country should benefit the people. Unfortunately, this is not the case with this government since no action is being taken to ensure the entire G$388B capital budget for 2023 benefits the people of Guyana.
(b) Measures to ensure equitable allocation of contracts
The stark imbalance in the award of government contracts must now be addressed to ensure a wider cross-section of Guyanese individuals and businesses can benefit as contractors. There is no denying the obvious fact that only a narrow section of the population benefits overwhelmingly from contract awards. This unacceptable situation has been allowed to continue unrestricted for too long and has become self-perpetuating. These acts of political and ethnic discrimination in the awarding of contracts are unacceptable.
Let it be recalled that the award of government contracts was an issue dealt with in the Constitutional Reform process that emanated from the “Herdmanston Accord” – meaning that in the aftermath of the 1997 election and public protest, the award of contracts (with the attendant discrimination and exclusion) was explicitly identified by all stakeholders as a matter of central importance for race relations, social justice, and equal opportunity in Guyana. The 1999 Constitution Reform Commission (CRC) agreed, therefore, to establish the Public Procurement Commission (PPC) as a body with constitutional powers to address this national problem.
While in government the APNU+AFC established the Commission and allowed it to carry out its constitutional mandate. Unfortunately, over the decades, through various machinations by the PPP, the Commission has been prevented from delivering on its mandate. This is the case at present.
The Public Procurement Commission must work towards building a contract award system that, while remaining fair and competitive, can at the same time include special measures to correct previous discrimination and injustices by opening the door for wider participation from under-represented groups. In this way the distribution of the country’s economic wealth can promote social and economic justice and inclusion across ethnic, religious, gender, political, and social lines.
