Following our walk-out from the National Assembly during the Budget Speech, we explained that we did so to register our protest against the violation of our Constitution regarding meaningful consultation on the Budget, We further explained that we would participate vigorously in the debate and the consideration of the Estimates in the Committee of Supply.
However, we consider it our duty to inform our supporters and the nation of our deep concerns about the 2014 Budget. The Minister of Finance has compounded his earlier refusal to consult citizens in accordance with Article 13 of the Constitution by presenting a Budget that is also in violation of the Constitution. We address this public appeal to the Minister of Finance calling on him to rectify the Estimates before the Budget goes to the Committee. The issues we have addressed are as follows:
1. Article 216 of the Constitution requires that all public revenues or other moneys be paid into the Consolidated Fund. The Budget must therefore include the following:
a) the balances currently held and the projected surpluses for 2014 by the Guyana Geology and Mines Commission; the Guyana Forestry Commission; the Guyana Harbour Bridge Corporation; the Cheddi Jagan International Airport Corporation; the Guyana Co-operative Financial Services; the National Frequency Unit; the Amerindian Purpose Fund; the Infrastructural Development Fund; UK Programme Aid – GEA account; Agriculture Rehabilitation Project Loan Account; Social Impact Amelioration Programme account; and every other public authority in Guyana.
b) The total amount collected by the National Industrial and Commercial Investments Limited up to December 31, 2013 from the sale of Government properties and from dividends received from Government investments;
2. We are recommending that the amounts requested for GuySuCo and the Guyana Power & Light Inc. be supported by proper explanations and documentation including business plans, justifying the request. In this regard we note that the relevant Ministers have failed to table annual reports of GuySuCo for several years and Guyana Power and Light Inc. a number of years. We wish to put the Ministers on notice that submission of all reports and statements required by law must be tabled in the National Assembly.
3. To provide the National Assembly with documentation to support the request for the allocation sought for the proposed Specialty Hospital. We need to know who will own the Hospital, how it will be managed, the pricing policy for the services to be provided and whether a member of the public would be excluded if that person could not afford to meet the cost to be imposed; and whether the State will be providing an annual subsidy to the Hospital. Further, we need the public to know why Exim Bank of India has not made further releases to Surendra Engineering who was awarded the contract for construction.
4. That the allocation for Amaila Falls Hydropower Project (AFHP) of US$80 million be excluded from the Estimates until full documentation is provided to show the precise purpose of the investment, the name of the company(ies) in which the equity is to be invested, the ownership structure and a Business Plan justifying the expenditure. The AFC is aware that the last Interim Licence issued under the Hydro-Electricity Act Cap. 56:03 expired on December 31, 2013. We need to know therefore whether there is currently a Licence in place. The pursuing of Amaila seems questionable in the face of the actual drying up of the water for extended periods, and Sithe Global making it very clear that it will not be backing the project in view of not obtaining full Parliamentary support. Thus, this proposed allocation for this project warrant serious re-consideration. And we have not been informed about the contents of that much awaited due diligence study from the IDB.
5. The Finance Minister provides the latest report from GRIF’s fund managers showing all transfers into and out of this account to date. The government claims US$115 million has been paid by Norway but only about US$70 million seems to have been transferred. A full report must be presented.
6. The AFC is aware that in 2013 the Minister of Finance spent sums of money in violation of the Appropriation Act No. 11 of 2013. It should be noted that the Court never ruled that this said Act was unconstitutional. The AFC notes that those spent sum of moneys were never authorised by the National Assembly and it wants the Minister of Finance to account to the National Assembly for those sums.
7. We note with horror that the Minister of Finance has re-designated the line item Revision of Wages and Salaries for which he was unable to account for three billion dollars in 2013. Readers will recall that the 2013 budget had provided $4,403 million for revision of wages and salaries, which was around 13% of all employment cost at January 1, 2013. If only 5% was paid, then where did the rest go?
We are of the opinion that to avoid such questions, the Minister decided this year that he would just change the item Revision of Wages and Salaries to Other Employment Costs. Such a heading would include pensions, gratuities and other benefits which are separately provided for. The AFC expects some honesty from the Minister. He must tell us what exactly Other Employment Costs represents and how much is proposed for increasing the wages and salaries of public workers. He must not cheat workers with manipulating the Estimates.
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