Forensic Audit reveals fired Guyoil boss gave multi-million dollar contracts to brother

The audit covered the period November 1, 2011 to May 31, 2015 and was done by Nigel Hinds Financial Services. The report said "undisclosed and ignored" conflict of interests occurred for the period under review, whereby the Managing Director, Mr. Badrie Persaud awarded transportation contracts of $62 Million over the review period to his brother, Indarjeet Persaud.

Forensic Audit reveals fired Guyoil boss gave multi-million dollar contracts to brother

The Ministry Of Finance has released the reports of several forensic audits that it initiated when the government changed in May 2015.

Several of the┬áreports have recommended criminal and/or disciplinary actions against culpable government officials of the former People’s Progressive Party government.

A look at the Forensic Audit Report into the Guyana Oil Company revealed incestuous behavior under the management and involving the now sacked Managing Director, Mr. Badrie Persaud.

The audit covered the period November 1, 2011 to May 31, 2015 and was done by Nigel Hinds Financial Services. The report said “undisclosed and ignored” conflict of interests occurred for the period under review, whereby the Managing Director, Mr. Badrie Persaud awarded transportation contracts of $62 Million over the review period to his brother, Indarjeet Persaud.

The report also pointed out in the findings that Mr. Persaud also awarded construction contract for $860,000 to his nephew, Avinash Persaud.

Aside from the initial sole sourcing of contracts, Persaud was a candidate on the PPP national list for the May 11, 2015 General Elections. To this end, the report said adherence to the decisions of a political party concurrent with managing a state owned corporation, creates conflict of interest issues that have negative implications for employee morale.

On February 29, 2016, The Guyana Oil Company announced the termination of the services of Persaud. A statement from GuyOil then had said that the decision was made after the Board of Directors of the company along with the Forensic Auditor reviewed the verified findings of the forensic audit. The audit was not released at that time.

The report also said that the oil company had no Marketing Manager and the functions of the Marketing Director were performed by the Managing Director “allowing for the avoidance of checks and balances – as one would expect in the largest government corporation by revenue.”

“Article VI of GOCL/Dealer contract was breached to the extent that some dealers were receiving fuel on credit without a bank guarantee or security bond,” the report added.

It stated that there was and continues to be major irregularities in the charge system used for fuel sales to customers with charge accounts.

“A 10% sample of 758 charge customers was conducted and our findings revealed that over fifty percent were irreconcilable and improperly managed.”

You must be logged in to post a comment Login