The Federation of Independent Trade Unions of Guyana (FITUG), as a leading voice of the nation’s workers, cannot help but be concerned and, obviously, very apprehensive about the accountability and prudent use of our nation’s financial resources. Several media reports, in recent days, have disclosed that damning and startling finding by the Auditor General for the year ended 2018. It should not be lost that the expenditure of the Government is ultimately financed by the taxpaying Guyanese public. Certainly and rationally, our people have high expectations that their hard-earned monies would be used in the wisest manner to ensure maximum benefit and return.
It is, therefore, of serious concern that the Auditor General has found that hundreds of millions of dollars cannot be accounted for. But more than that, the constitutionally-independent Audit Office has recognised what appears to be unhindered wastage of our nation’s financial resources. We read disappointingly about the excessive cost of drugs in Region 6; the apparent mis-use of funds earmarked for Georgetown’s restoration; the overpayment to contractors, and so many other seeming financial mis-adventures. This is, for us, deeply worrying as it appears those charged with safeguarding our nation’s finances have apparently little sympathy for the efforts of our nation’s workers and others who ultimately foot the bill for the indiscretions and feel the loss of not having adequate and efficient Government services. The double whammy is more hurtful given the hard-work of our people.
FITUG, which has also obtained a copy of the report, has recognised that in 2018 the Government raked in $15.1B more in revenues than anticipated. The higher than anticipated take, we noticed, came mainly from taxes. We saw custom and trade taxes was $2.8B more than expected; internal revenue, which includes withholding tax and income tax, was $8.3B above budget; VAT was nearly $5B more than anticipated and excise tax was $1.3B higher than estimated. Of course this is at variance from what the Government said previously. The April 16, 2019, Guyana Times had reported that the Ministry of Finance Year End report for 2018 indicated that tax revenues were lower than anticipated. However, the audited and independently verified data is demonstrating something else.
On the issue of taxes, we noticed the January 07, Guyana Times also reporting that, according to the Auditor General, tax concessions for 2018 amounted to almost $135B, a 92 per cent increase from 2017. What was most striking, according to the Times, was that “luxurious and modern vehicles attracted great tax exemption of which no payment of taxes was required.” The newspaper disclosed that the “…lucky individuals paid a total of $5.3 billion in taxes, just four per cent of the billions in taxes that were waived.” By our calculations, $127.2B of the $135B in tax concessions granted regarded tax exemptions on vehicles. Tax concessions, as far as we are aware, are granted with the intention of promoting investment and job creation. We have to ask:- is it that we have moved away from this premise?
Indeed, it appears, there is a lack of compassion for the damage that has been inflicted. We were taken aback when we saw Minister Jaipaul Sharma in the January 07, Kaieteur News, from all appearances, expressing outrage about the report appearing in the public. The FITUG would have thought that the Minister, as a qualified accountant, would have been more concerned about the revelations of the report rather than its appearance. The fact that the Minister is expressing consternation caused us to wonder. We hasten to remind the Minister that even the darkest secrets ultimately come to light and in this case, at one time or the other, the report would have found its way into the public eyes.
For us, the Auditor General’s report was eye-opening and revealing. It has obviously causes us to wonder how much of an effort is really placed in ensuring that our people’s monies are appropriately spent. Undoubtedly such questions abound. We saw in the report that even economic projects implemented in several regions have floundered. Weren’t these initiatives properly studied before implemented? Or is it a case of the Administration gambling with our people’s wealth. The FITUG has pointed out last year how oppressive taxes have become, with taxes per capita rising by over 60 per cent in the life of the Coalition Administration. At a time when, our nation’s workers have to pinch and squeeze and use innovative means to survive and make their ends meet, we have to learn about the poor accountability and planning that pervades.
