An examination of the books of the Guyana Defence Force has revealed vouchers totalling over $1.8 billion are missing, according to the Auditor General’s report for the fiscal year ending December 2021.
Auditor General Deodat Sharma, in his report, said that the GDF was in breach of Section 30 of the Audit Act 2004 in that during the period under review, a sample of 346 payment vouchers totalling $2.023 billion relating to current expenditure was requested for audit examination. However, at the time of reporting, seventy-two vouchers totalling $967.873 million or 21% were not presented for audit.
Additionally, for capital expenditure of the 268 payment vouchers requested totalling $1.613 billion, sixty-eight valued at $917.879M or 25% were not presented.
“Similarly, ninety Payment Vouchers totalling $333.036M and seventeen totalling $69.447M were still not presented for audit pertaining to 2020 and 2019 respectively. As a result, a determination could not be made as to the propriety of the payments or whether value was received for the monies spent,” the report highlighted.
GDF, according to the report, said that the vouchers are in the custody of the Ministry of Finance Sub Treasury Depart- ment and as such, it is unaware as to why they were not presented for auditing. The Auditor General reiterated his recommendation that the GDF collaborate with the Accountant General’s Department to locate and submit all payment vouchers for audit.
The report also highlighted that after expending $180.1 million on furniture and equipment, the Guyana Defence Force could not account for assets worth over $37.6 million. The GDF committed to investigating and recovering the missing furniture and equipment.
The Auditor General said that for 2021 $540.775 million was expended on fuel for the army through an arrangement with the Guyana Oil Company. As it related to bulk purchases, the Force makes prepayments to GUYOIL based on estimated consumption. Whenever the need for fuel arises, the Force would make a request to GUYOIL for fuel to be delivered to its outlying locations. These locations are Base Camp Ayanganna, Base Camp Stephenson, and Coast Guard Headquarters at Ruimveldt.
The drivers of the tankers delivering the fuel would sign the respective invoices as having uplifted the fuel from GUYOIL, and upon delivery at any of the Force’s locations, the rank receiving the fuel would sign the respective invoices as receiving the fuel for the Force.
The report said that Base Camp Seweyo has a storage tank for diesel with a capacity of 2,250 litres and an examination of the fuel ledger and a fuel count conducted on 8 June 2022, revealed that the ledger reflected a balance of 1,460.5 litres of diesel. However, it was difficult to conduct a measurement of fuel from the storage tank, since this Base was not equipped with a dipstick or any other means to obtain a reading of the fuel stored.
The Army said that it is in the process of acquiring a dipstick.
Fuel and lubricants have, historically, been a problem with the GDF and the Auditor General consistently flags the discrepancies.
In 2019 and 2020, $751.660 million and $507.988 million were expended on fuel and lubricants. An examination of those books, by the Audit Office, revealed that a vehicle with registration GHH 7538 uplifted fuel valuing $249.022 million for both years. Audit enquiries revealed that the said vehicle was neither owned by the Guyana Defence Force nor GUYOIL. In addition, there was no contractual agreement for this vehicle to uplift fuel on behalf of the Force.
A special report was issued pertaining to fuel and lubricants. Three persons were charged and are presently before the Magistrate’s Court to answer charges.
