EU puts funding on hold over lack of budget oversight

EU puts funding on hold over lack of budget oversight

The European Union has confirmed that it has put millions of dollars on hold in funding under the budget aid banner in Guyana.

In a statement on Friday, the EU said that it has two on-going budget support programmes in Guyana, one for the sugar sector (EURO 28.9 million) and one for sea defences (EURO 14.8 million) and that the latest partial payments related to these two programmes “have been temporarily put on hold until all eligibility criteria, inter alia budget oversight, are satisfactorily addressed.”

The European Union [EU] said it has a long standing commitment to support development and poverty reduction in Guyana and in 2014, EURO 34 million was allocated to Guyana under the 11th European Development Fund. EU aid is channelled through different modalities. Budget support is one of them.

The move by the European Union came as a surprise to the Government of Guyana. Finance Minister Dr. Ashni Singh complained about the move at a Monday press conference. He stated that the reasons provided by the EU for the cut in aid were “spurious” and without basis.

News Source understands that the EU made the decision following the President’s decision to suspend the parliament of Guyana. By doing so, the President brought a halt to all oversight of government projects by the parliament. The President has since announced a date for general elections.

Filed: 23rd January, 2015

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