Among the findings of the team appointed to investigate the alleged financial misconduct at the Demerara Harbour Bridge Asphalt’s Plant, is management’s continuous granting of credit to Courtney Benn Contracting Services Limited (CBCSL) despite the decision of the directors to discontinue selling asphalt on credit to this client until all monies owed are collected.
The report that was made public by the ministry stated that the minutes of the meeting of the Board of Directors on November 29th, 2016, revealed that the directors were concerned over credit being granted to CBCSL when there was no existing policy for providing credit for such a large amount.
“We have noted that the above credit was granted without a credit review process. We noted that the Plant continues to give credit to CBCSL despite the decision of the directors to discontinue selling asphalt on credit to this client until all monies owed are collected. We noted that the above credit continues without a credit review process and board of directors’ approval despite the Minister expressing disgust and dissatisfaction in this regard, at Board of Directors meeting held on 19th January, 2017,” the investigators’ report stated. It was disclosed that of December 18, the balance owed by CBCSL is $12,031,153. As a result of this, the team determined that the large amount outstanding, moreso for over ninety days, will result in high costs associated with receivables, and that management did not abide by the policy set by the board.
They therefore recommended that management make every effort to ensure that monies outstanding are collected on time and ensure that in the future, the policies of the Plant are adhered to at all times.
Meanwhile, management’s response was that the board had dealt with the matter and there was no credit policy at that time hence they were unable to be guided by such a process.
