The role of a Permanent Secretary is a complex one. He is given tasks and responsibilities that are essential to the smooth and effective management that any government ministry requires.
He also reviews and contests decisions made by the Minister himself. In his capacity, he is in charge of the financial well-being of the Ministry that he is placed in.
Another officer who acts in a similar position in Guyana is the Regional Executive Officer (REO) or the Administrative Officer for a specific Administrative Region. Both are expected to carry out the instructions of the Minister or Regional Chairman, providing that these instructions do not violate the laws, rules, regulations or circular instructions.
The position of the Permanent Secretary/ REO also comes with specific responsibilities and regulations after it was noted in the past that several ministers were passing on illegal instructions. To safeguard the financial officer, a set of rules have been developed. .
If a Minister definitively gives an instruction that is deemed inappropriate, it is the duty of the Permanent Secretary or the REO to formally discuss the matter with the Minister.
If the Minister insists that the instruction be carried out, the Permanent Secretary/REO must set out his/her concern in writing, and ensure that it is copied to the Auditor General. If there is a further insistence on the part of the Minister, the Permanent Secretary/REO must inform the President in writing, copied to the subject Minister.
Permanent Secretaries and REOs are also the heads of budget agencies. They have enormous responsibilities in relation to budget preparation, budget execution, and accounting and financial reporting, as outlined in the Fiscal Management and Accountability (FMA) Act.
It is their duty to strictly follow the requirements of the Public Procurement Act, especially when it comes to tendering for the procurement of goods and services and the execution of works. This is to make sure that there is utmost transparency and accountability for every dollar spent.
These financial officers are also expected to present themselves to the Public Accounts Commission (PAC) whenever asked to do so. This is done to facilitate the explanations for any shortcomings or discrepancies in the financial management of the ministry, department or region for which they have specific responsibility, as identified by the Auditor General.
In the FMA Act, Section 9 provides for the appointment and responsibilities of the Finance Secretary who is also, by extension, a Permanent Secretary. He is responsible for, among other things, issuing financial circulars in relation to:
(a) Procedures to implement the Act and its Regulations;
(b) Procedures to enhance transparency and accountability for the use of public monies.
Furthermore, the Finance Secretary along with the Accountant General and the Auditor General is an advisor to the PAC.
In accordance with Section 11 of the Act, Permanent Secretaries and REOs, who also serve in the capacity as heads of budget agencies, are required to manage the affairs of the ministry, department or region in a manner that promotes the proper use of the public resources assigned to the budget agency. In particular, they are responsible for:
(a) Implementing appropriate processes and procedures to prevent the incidence of fraud, embezzlement or misappropriation of public monies;
(b) Maintaining an effective internal audit capability;
(c) Pursuing the collection of any monies owing to the budget agency;
(d) Coordinating the preparation of the budget submission to the Ministry of Finance;
(e) Maintaining the financial management system for the budget agency;
(f) Operating bank accounts approved by the Minister of Finance;
(g) Ensuring the security of and accounting for all cash and other financial assets held by the budget agency;
(h) Maintaining financial accounts and registers as required by the Minister, the Regulations, the Financial Circulars or the management of the budget agency; and
(i) Providing the finance secretary with any information that is requested concerning the affairs of the budget agency.
In Section 21 of the Act, there is a provision for all budget agency receipts to be paid over to the Consolidated Fund and no expenditure can be incurred except by way of an appropriation. This Section also refers to what is known as a “conditional appropriation” which allows for the budget agency to spend a specified amount of money.
Of course, there is the condition upon the budget agency that it earns at least the equivalent amount which in turn must be collected and paid over to the Consolidated Fund.
The budget agency can only spend a conditional appropriation based on a written agreement with the Minister prior to the presentation of the Estimates in the National assembly specifying, among others, the source of earnings and the amount expected to be collected in the fiscal year.
In accordance with Sections 48-49, a Minister or official shall and must not in any manner misuse, misapply, or improperly dispose of public monies.
If a loss of public monies should occur and a Minister or official has caused or contributed to that loss through misconduct or through deliberate or serious disregard of reasonable standards of care, that Minister or official shall be personally liable to the government for the amount of the loss.
Finally, Section 85 provides for penalties in relation to;
(a) falsification of any account, statement, receipt or other records kept for the purpose of the FMA Act, the Regulations, the finance circulars or any other instrument made under the Act;
(b) Conspiracy or collusion with any other person to defraud the State or make opportunity for any person to defraud the state; or
(c) Knowingly permitting any other person to contravene any provision of the Act.
These penalties extend not only to an official but also to a Minister and if found guilty of an indictable offence, the official or the concerned Minister is liable on conviction to a fine of $2 Million and to imprisonment of up to three years.
