Investigation accuses Guyana frequency regulator of illegal practices

Guyana's National Frequency Management Unit (NFMU) has been reported to have illegally diverted funds to finance two of the People's Progressive Party's flagship projects, namely One Laptop per Family and E-Government.

An investigation into the NFMU found that between 2010 and May 2015 over 1.6bn Guyanese dollars (US$7.82mn) were allocated to administrative expenses for the two projects, instead of going to the Consolidated Fund, according to a report published by the Ministry of Finance.

"The NFMU does not have the authority to meet those expenditures, since they were not incurred by the unit. Apparently, failing to appreciate the precedence of statute over "government policy," the management of the NFMU misguidedly continues to justify the statutory violation," stated the investigation report.

The report shows that the alleged illegal expenditure distorted the operating results of the NFMU between 2012 and 2014 because of the significant sums incorrectly included in the agency's expenses.

"After adding back these expenses, which in any case are not allowed for tax purposes, a preliminary calculation suggests that the NFMU has a liability to taxes of more than 1bn Guyanese dollars, not including penalties and interest. We saw no evidence that the Guyana Revenue Authority has made any effort to assess the NFMU to any taxes," states the report.

The NFMU was established in December 1990 in order to manage the electromagnetic frequency spectrum and administer the number resources in Guyana.

The National Assembly of Guyana is due to restart the process of passing its delayed telecommunications bill this month.