The chief executive officer of the Agricultural Development Bank (ADB) Sheivan Ramnath has called for an internal investigation into the findings of the 2012 Auditor General report which revealed that loans totalling $9 million approved by the bank were used for the construction of a bar, lounge, hardware and two-storey building.
Ramnath’s call for the investigation was triggered by Minister of Agriculture, Land and Fisheries Clarence Rambharat, who spoke about the construction of the two-storey building, which contained a master bedroom, jacuzzi, walk-in closet, wraparound patio, recreation room, loft, study, living-room and dining-room when he delivered his budget contribution in the Senate on October 20.
Rambharat also queried a sports bar in Chaguanas and hardware. The buildings were constructed after the bank had approved loans in excess of $9 million to applicants. The ADB offers loans to farmers for start up businesses, agricultural equipment, vehicles, business expansion, construction of farm buildings and infrastructure.
On Friday, Rambharat in response to an e-mail said the findings of the report “will be subject to investigation. I have not received a response from the ADB to the matters raised in the Audit General’s report.” In light of the revelations, Ramnath said the bank’s intention was to “investigate internally” the contents of the report. Ramnath said the probe had begun and a detailed report would be on his desk next month.
“If anything is found out of the ordinary it would be reported to the higher authorities,” Ramnath gave his assurance.
Former food production minister Vasant Bharath said he was taken by surprise when he heard about the report. In 2012, Bharath, who was reassigned to the Ministry of Trade, said the matter was not brought to his attention, nor was he made aware of it.
“I don’t know when it actually happened. It could have happened in September after I left office, I don’t know. It could have happened while I was there as minister.” Bharath said it was not his job as minister to micro manage.
“It is impossible for a minister to know every single thing in a ministry.” Bharath said for a farmer to qualify for a loan, a proposal has to be submitted by the applicant, which would be reviewed by management and a recommendation made.
“Then the board approves once the applicant meets all the requirements and checks and balances are done.” Bharath said once the applicant received the money, the bank should ensure the money was spent for the purpose intended.
“The only way the person could have built a sports bar, lounge and jacuzzi is if the ADB did not do follow-up checks.
“Somebody has fallen down on the job. At the end of the day, whatever it was, the fact is, that somebody should have paid the price...some action should have been taken, regardless of what it was.”