The Ministry of Health (MoH) of Guyana appeared before the Public Accounts Committee today to address outstanding payments totaling more than $128 million owed by various companies since 2019.
This issue was highlighted following discrepancies identified in the Auditor General’s 2019 report, which initially indicated outstanding debts of $306 million.
During the session, MoH Permanent Secretary, Malcolm Watkins, informed the committee that significant progress had been made in recovering these debts, with approximately $128 million still outstanding.
Watkins explained that efforts are actively underway to reconcile these outstanding balances, particularly noting challenges related to defunct agencies and inadequate documentation hindering the recovery process.
One notable instance discussed was a $67 million contract from 2015, where the Ministry had rejected laboratory items due to specification changes.
Watkins assured the committee that steps are being taken to rectify this particular issue and ensure proper contract reconciliation.
In addition to defunct agencies posing obstacles, Watkins cited specific challenges with documentation, such as a $2.4 million debt for scientific supplies and smaller sums owed to entities like US 8 Global Health and Massy Gas, where incomplete documentation complicates the verification process.
The committee also delved into potential amendments to Guyana’s Procurement Legislation, particularly concerning payments to international agencies.
There were discussions about aligning local laws with international practices that often require full payments upfront before goods are delivered, contrasting with Guyana’s current policy of payment upon goods receipt or project completion.
The MoH’s appearance before the Public Accounts Committee underscores the government’s commitment to fiscal accountability and transparency, ensuring that outstanding debts are addressed promptly to safeguard public funds and uphold contractual obligations.