A waste of ink – Guyana Chronicles

Dear editor,

PLEASE allow me to highlight several articles and letters that were published in the mainstream media on November 3, 2024. I decided to use this approach because my commentary on each is very brief and to avoid having to write multiple short letters.

First, let’s start with an article in Stabroek News with the headline: “Goolsarran slams VHE for second oil audit.” Mr. Goolsarran’s attacks on this firm are not only inappropriate, but also lack credibility. It is important to note that the cost oil audit contract with VHE was awarded in accordance with due process and the correct procedure provided for in the Procurement Act. In contrast, several forensic contracts were allegedly improperly awarded/gifted to him, Anand Goolsarran (note my choice of word(s) that were allegedly “given or gifted” to him but not awarded), in violation of procurement conditions. and Former Treasury Secretary Winston Jordan’s Audit Laws.

Secondly, in his letter entitled “Half-Annual Reports Raise Issues of Ethics, Data, Language and Trust”, Mr. Ramesh Gampat argued that the Bank of Guyana made an error in the 2024 Mid-Year Report, which is the base period for exactly what GDP growth was calculated, unknown. Thus, he suggested that it should be the end of 2023 and stated that any other period would be meaningless. He also stated that the report does not contain any table with GDP as of the first half of 2024. These arguments and statements by Mr. Gampat were a waste of ink. Obviously, his letter was intended to confuse the average reader and, moreover, to insultingly call into question the credibility of the work being carried out by the Bank of Guyana and its employees.

Mr. Gampat is a qualified economist and he must know that in any comparative analysis one has to compare like with like. It is therefore incorrect to assume that the base year for the half-year GDP growth obtained in 2024 will be the GDP figure for the entire financial year, January-December 2023. The correct base period is the relevant half-year period for 2023, i.e. January-June 2023, and not the entire year as suggested by Mr. Gampat. This is clearly reflected in other tables in the report. It is absolutely mind-boggling that these basic concepts and methods have to be explained to a trained and experienced economist.

Moreover, his claim that there was no table of GDP figures for the January-June 2024 half-year is inaccurate. Tables 10.3(a) – 10.3(d) present production indicators for all industries, including for the six months of January-June 2024.

Finally, in his weekly commentary published in Stabroek News, he signed: “Jagdeo promises gross violation of the constitution: Ali must assert his power.” This is another public comment that is a waste of ink. Mr. Ram contends that the government’s refusal to legislate the distribution of cash grants is a violation of the Guyanese Constitution.

According to him, “Section 217 of our Constitution could not be more precise in its requirements: “No money shall be withdrawn from the Consolidated Fund without due legislative authorization.”

Contrary to this view, Mr. Ram conveniently ignored the fact that in accordance with Section 217 of the Constitution of Guyana, in order to give effect or effect to this section, the Financial Management and Accountability Act (2003) (FMA Act) was accepted. Therefore, all money withdrawn from the Consolidated Fund is subject to the FMA Act. The decision to distribute cash grants is a matter of public policy and accordingly the money must be properly distributed in accordance with the FMA Act; therefore, there is no violation of the Constitution.

But imagine that if the government accepts Mr. Ram’s argument, then by his logic and reasoning, he is essentially saying that the government will have to pass a lot of laws to regulate all withdrawals from the Consolidated Fund, for example, for payment of salaries civil servants. wages, wage increases, old age pension, increase in old age pension, all social security programs, infrastructure, health, education, agriculture, tourism, and all aspects of public financial management and public expenditure. This approach to financial management and administration would be completely chaotic and complex.

It may be necessary to carefully examine the brain cells of the source of these ideas to determine what may have caused the quality of the author’s thinking abilities to deteriorate in this regard.

Sincerely yours,
Joel Bhagwandin