The Auditor General’s Department is raising concerns over 100-million US dollars in unsecured loans issued by the Petro-Caribe Development Fund without the approval of Cabinet.
In her 2013/2014 report, Auditor-General Pamela Munroe-Ellis says the unsecured loans were made to four entities
According to Mrs. Munroe Ellis, those in charge of the Fund reported that they did not obtain Cabinet’s approval.
Mrs. Munroe Ellis reported that one of the loans was subsequently assumed by the Ministry of Finance.
The report says the Fund’s operators explained that credit assessments done for two of the entities showed that they had a good debt service record.
Mrs. Munroe Ellis urged the Fund to take the necessary steps to have the particular entities provide the appropriate security.
She also recommended that operators of the Fund ensure that all future loans are supported by adequate security or receive Cabinet approval.
The Auditor General’s report was tabled in Parliament on Tuesday.