The latest report by the Auditor General of Guyana, Deodat Sharma has placed the spotlight on the Regional Administration of Region 10 for its questionable management of millions of tax dollars when purchasing drugs and medical supplies.
Sharma’s report disclosed that out of an allocated $225M, only $224.7M was expended, leaving a lingering question about the fate of the remaining funds.
Another concerning discovery was the issuance of an Inter-Departmental Warrant (IDW) valuing $125M to the Ministry of Health (MOH) for procurement on behalf of the regional administration. Shockingly, an examination of the drugs dispatch report disclosed a shortfall of $63.770M, raising doubts about the transparency and accuracy of the entire procurement process.
The audit, delving into the regional administration’s procurement procedures, also uncovered 11 instances where the three-quote method, totaling $66.791M, was improperly utilized. Despite attributing the lapse to an oversight, the Procurement Department now claims corrective measures are in place, with key personnel undergoing comprehensive training.
Another alarming revelation surrounded payments totaling $44.244M for drugs and medical supplies which were processed without proper documentation and traceability to the ministry’s Materials Management Unit’s (MMU) ‘NIL Lists.’ The regional administration’s justification, cited urgent health service needs and MMU stock taking. The AG report said this raised concerns about adherence to due process and called for a thorough reassessment of procurement practices.
In response to the audit’s findings, the Head of Budget Agency acknowledged the need for improvement, stating, “Mechanisms have been put in place to avoid any reoccurrences.” However, the Auditor General insisted on full compliance with the Procurement Act and recommended stringent measures be put in place to ensure transparent procurement practices.
The 2022 Auditor General’s report urged the regional administration to implement robust systems for reconciling received supplies, uphold the integrity of public funds through compliance, and ensure transparent procurement practices to rebuild trust in financial management.
