Court battle between IDPADA-G, gov’t over subvention likely to end soon

The case filed by the International Decade of People of African Descent Assembly-Guyana (IDPADA-G) against the government over the discontinuation of that body’s $8M monthly subvention, is likely to end in the coming months, as Chief Justice (ag) Roxane George, SC, after hearing lengthy arguments on Tuesday, reserved her decision for a later date.

Last December, the organisation filed judicial review proceedings over the government’s refusal to pay its $8 million monthly subsidy.  

In court filings, the IDPADA-G said that the discontinuation of funding had, among other things, forced it to lay off staff and stop its planned activities.

There had been a public spat between the government and the IDPADA-G over several months with the government accusing the body of mismanaging its funds.

IDPADA-G’s Attorney-at-Law, Dr Vivian Williams, while presenting arguments on Tuesday, said that a commitment was given that the government would fully fund the operations of the body until the end of 2024 by former President David Granger.

During the decade (2015-2024), nations are called upon to create programs focused on recognition, justice, and development for people of African descent.

Contrary to the government’s position, the lawyer submitted that there is no evidence to support that the funds disbursed to the organisation were used for a purpose other than what was stated  in the work plan submitted to the Ministry of Culture, Youth and Sport.

Notably, Justice George observed that the financial statements tendered by IDPADA-G shows that the body was utilising a large portion of the subvention to pay employees while only a “miniscule” sum was being pumped into projects. 

In reply, Williams sought to clarify that at the time the work plan was submitted, IDPADA-G did not factor in the costs associated with adequately compensating human resources, rental of a building for its headquarters, travel expenses, among other things.

When asked to explain his contention that the services provided by the organisation are of “value” to the government, the lawyer said that the IDPADA-G addresses economic and social matters affecting a significant section of the country’s population.

Pressed by the Chief Justice on when the subject minister engaged IDPADA-G on its concerns regarding the use of the subvention,  Attorney General Anil Nandlall, SC could not provide a definite answer, only stating that it was not disclosed in his submissions.

At this point, Justice George pointed out that although the government can stop providing funding to the organisation whenever it wishes, it cannot do so without first notifying the organisation and giving it a chance to be heard on the issue.

The parties had spent several weeks in mediation but after talks had “irretrievably broken down” between the two sides, the case went back to the Chief Justice for hearing. At an earlier hearing, Justice George had described the matter as a “national embarrassment.”

It is the government’s case that it withdrew the organisation’s grant after receiving reports from numerous persons that although they are qualified for assistance from the subvention disbursed to IDPADA-G, they were wrongly excluded and deprived of benefitting from it. 

According to documents filed with the court, IPADA-G received subsidies of $68,438,000 in 2018, $100,000,000 in 2019, $107,223,607 in 2020, $100,000,000 in 2022 and $66,666,672 as of August 2022.  A total of $100M was set aside for the organisation in the 2023 budget.

By withholding the monies, the IDPADA-G has argued, inter alia, that the Government has broken its legitimate expectation; therefore, the organisation is entitled to intervention of the court on the violation of this legitimate expectation.

It has argued further that withdrawal of the subvention is a breach of contract. Among other things, the body is seeking an order of mandamus directing the Minister of Finance to immediately pay to it, the sum that the government has committed to providing.    

In mid-April, the Government announced that it will bypass the IDPADA-G and, instead disburse the 2023 subvention directly to the 55 organisations that make up that body.