Public Administration and Communications Minister Maxie Cuffie has described as “old” news, the payment of $65.3 million for rental of four unoccupied properties over a period of time.
Cuffie was responding to statements made by Auditor General, Majeed Ali when he and members of the department appeared before the Public Accounts Committee on Wednesday, to discuss the report of the Auditor General for the period ended September 30, 2016.
In a statement Cuffie said: “We have given up over 20 leases on unoccupied buildings to date. There have also been immediate steps to undertake space audits which will provide greater efficiency and optimal use of ofice spaces thereby ensuring the government receives the best value on property rental matters.”
Cuffie said, “Government’s monthly bill as at September 2015 was approximately $45,360,830 VAT exclusive. Since then, we have vacated a number of properties where the rent was being paid without properties being occupied, resulting in a monthly savings of $3,216,259 VAT exclusive in rentals as at May 31, 2017.”
In early May, Prime Minister Dr Keith Rowley had opened the government’s campus plaza which houses Ministrys such as: The Office of the Attorney General, Ministry of Finance, BIR, Customs and Excise and other government departments. Construction on the plaza had begun in 2004.
He added that the keys to a building rented by the personnel department were returned. The building was being rented for $1 million plus VAT per month for the period December 10, 2012 to August 31, 2016.
Explaining further why the building, which was supposed to be occupied by the personnel department, was not occupied, Cuffie said, “Delays in outfitting the building were partly the cause for non-occupation of the personnel department rental.”
He added that the Property and Real Estate Services Division of the Ministry introduced measures to ensure that all Ministries have available funding to undertake outfitting prior to any rental agreement.
Referring specifically to One Alexandra Place, which cost the government over $50 million in rent between December 2012 and July 2016, Cuffie said the building is now fully occupied under the same terms that had been previously negotiated.
Referring to the overall work of the Auditor General’s department, Ali told the PAC on Wednesday that he was not satisfied with the improvements for the period ended September 30, 2016 compared to the previous year, “there were not much improvement in certain areas which were reported on in the 2015 report, these areas continue to draw attention.”
Ali also told the PAC that one ministry paid as much as $53.5 million from December 2012 to July 2016. He noted that rental payments have stopped.
Stating that public funds are not being utilised in an efficient way he said, “Two entities continue to pay rental while one took up occupancy in March 2017.”
Regarding the internal audit function in the public service, Ali said it appears this function is “very weak.” Highlighting some issues, he said rental payments were being made without lease agreements in place, proper maintenance of inventory records, and the tagging of items as well as overpayments, continue to be a major concern for the Auditor General’s department.
“My department anxiously awaits the full implementation of the Public Procurement and Disposal of Public Property Act which promises to improve transparency and accountability in all government agencies.”
Asked by Chairman of the PAC, Opposition MP Bhoe Tewarie about the recommendations the committee can make concerning improving the internal audit function, Ali said the Comptroller of Accounts is dealing with that issue and would be looking at it when implementing their Information Management System.
Ali, pressed further about recommendations for his department, said technology and qualified people in IT, finance and accounting would make a difference in the work that they do.
