Ramjattan slams misdirected public spending

Ramjattan cited several issues, including the presentation of supplementary budgets annually, the Skeldon Sugar factory and the budgetary allocation for the judiciary in this year’s budget, among others which needed to be addressed.

He said that there appears to be some difficulty in the budget department of the Ministry of Finance. Questioning the sincerity of national budgets, he said each year supplementary provisions are brought before the House. He said that budgetary allocations for one year would often roll over into that of the following, and according to him, money allocated for projects in the previous year‘s budget appeared to dissipate.

Ramjattan stated that one project which falls into this category is the construction of airstrips on the Essequibo Islands of Leguan and Wakenaam. He said that in 2009 some $200 million was allocated in the budget for these projects, while the projects were again allocated money this year. “It is all there again,” Ramjattan stated.

He cited a recent Transparency International Report where Guyana is ranked among the most corrupt in the Americas. He said, “What we have are cases of nepotism.” According to the AFC Chairman, there have been instances, as reported in the Kaieteur News and Stabroek News, where money allocated to projects is often higher than what the project actually cost. “Is this genuine? Is it going to be one that will consolidate and transform? It will not,” he said.

As regards reform of the justice sector, Ramjattan stated that there is need for the legal system to be in order before the country proceeds with development, noting that in the past he had not seen the necessary results. He stated that there is “absolutely no political will” by the administration to ensure legislation is implemented relating to the sector, pointing to the recent Paper Committal law as well as legislation to have video testimony provided as evidence in the courts. “The justice system seems to be floundering,” Ramjattan said.

As regards the sugar industry, Ramjattan stated that it is in deep trouble, adding that at a recent meeting of the Economic Services Committee (ESC) of the National Assembly, Guyana Sugar Corporation (GuySuCo) representatives stated that the new Skeldon Sugar factory has some 100 defects, 10 of which were described as critical. He stated that there also appears to be political appointments at the sugar corporation.

Looking at the prospects for the sugar industry on the international market, Ramjattan noted that Guyana has lost some $1.6 billion as a result of the non-submission of a business plan to the international partners. He said that at a recent ESC meeting, the explanation given by the authorities was that it was not the non-submission of the business plan which cost the local industry but that the plan submitted did not fall within the parameters of the international requirements.

A passionate Ramjattan continued that, “control freakism of the administration has resulted in political appointments… stacking up with accountants.” He questioned whether the management of the sugar corporation has the interest of sugar workers at heart.

Ramjattan also touched on the President’s trips overseas, stating briefly that the head of state “goes all over the place begging for money” and “he comes in, bathe, change and gone out back.”

He also touched on the ICT sector, questioning the government’s plans to land a cable here through neighbouring Brazil. He said that the government’s e-governance plans are being used, “to set-up infrastructure for certain friends of the government.” Regarding the US$2 million investment plan where the fibre optic cable is concerned, Ramjattan questioned, “Who is paying for the cable? Who will run its operation? And more importantly, was a feasibility study done?”

Ramjattan stated that his analysis of the budget is that it is “incomplete” and that it is, “not going to be a true depiction of plans for 2010.”

‘No clue’

Rising to respond, Housing Minister Ali stated that Ramjattan has “no clue” about budgets. He questioned Ramjattan’s position on supplementary provisions, stating that if the economy out-performs the budget and the government decides to use additional in-flow of money to expand facilities, he sees nothing “wrong in such supplementary provisions” being made.

According to Ali, “it is obvious that the AFC is disinterested in development,” and he asked Ramjattan if he was against utilising additional revenue for the benefit of the people?

Ali alluded to a 2010 World Bank Report, which according to him stated that Guyana’s rating in certain areas of governance ranks high, among them, in the area of control of corruption, 76% and being a government of effectiveness, 95%.

Ali stated that the opposition has failed to address several issues, which he noted the administration was proud of, including the Low Carbon Development Strategy as well as plans to develop hydropower generation.

He alluded to a previous presentation by AFC MP Latchmin Bhudan-Punallal that “the government has been going to Norway with a begging basket.” Ali responded that the opposition is not viewing the government’s development strategy. He said the LCDS seeks to boost the efforts of the government in advancing skills and developing the country. As regards the proposal of the administration to terminate a fibre optic cable here via neighbouring Brazil, Ali stated, “no country can globally speak about modernisation” without concentrating on e-governance.

He said he positively believed that the cable will create hundreds of jobs for Guyanese, noting that when the project is realized, the AFC “should remember that they opposed it.” Ali also touched on the water supply to Region 10 – a matter which was highlighted earlier on Wednesday by PNCR MP Vanessa Kissoon. According to the minister, he “has a problem, with when she tries to create division on governance.” He said that it is the responsibility of the administration to govern the country, and he alluded to some $554 million spent in 2009 on connecting some 46 km of pipeline, 40 km of drains and some 5,023 house lots for the benefit of Lindeners. Ali stated that house lots have been allocated in several areas within Region Ten. He said, “Our love for the people in Region Ten will continue, we will continue to expand the housing sector.”

Ali called on the Minister of Finance to note that supplementary provisions will be needed as, according to him, the Housing Ministry will be making significant investments in the housing sector in Region Ten. “Our people are in Linden,” he stated.

He elaborated on monies invested and which the administration plans to invest in Region Ten, including some $163 million spent on water, among projects such as a new well at Amelia’s Ward. He said that in 2010, expansion will continue as water distribution will continue to be pursued in parts of the mining town. Ali pointed out that one challenge facing the sector is that of high operating costs. He stated, however, that the Linden area has “good gravity flow,” and as such a Linden Master Plan will be implemented to improve the effectiveness of the sector.

Ali also urged that attention be paid to water conservation, stating that while there is no problem with production of water, this aspect of maintaining the network is of paramount importance.