The Tribune

SUSPENDED National Insurance Board director Algernon Cargill has asked the courts to investigate the appointment of accounting firm Grant Thornton to conduct a forensic audit of NIB.

Mr Cargill yesterday filed an application in the Supreme Court for a judicial review of the move, claiming the Ministry of Labour’s decision was “unfair, arbitrary, irrational and in breach of the rules of natural justice.”

The appointment of Grant Thornton, the application said, amounted to “a usurpation of the powers of the Board of Directors of the National Insurance Board” as it interfered with the day-to-day operation of NIB, contrary to sections 7 and 47 of the National Insurance Act.

Yesterday, Mr Cargill’s lawyer Alfred Sears told The Tribune: “I feel that Mr Cargill was unfairly treated. For example the appointment of the auditor. I looked at the (NIB) Act and I don’t see – and I know the Minister is well intentioned – how the Minister could have appointed an auditor for NIB without a board resolution, without any public tender, to use NIB’s money to pay for it without the requisite board resolution.

“We are all Bahamians and these institutions belong to all of us. They don’t belong to the PLP or the FNM and if a matter arises and someone has a complaint everybody has an interest to ensure the rule of law is supreme.”

Allegations were made against Mr Cargill last year, in response to which he started action in the Supreme Court with a number of claims stating wrongful dismissal and defamation of character by now fired Board chairman Greg Moss.

Mr Cargill was later put on administrative leave.

The public was first alerted to the NIB infighting after a lengthy Board document, written by Mr Moss, was leaked on the internet making serious claims against Mr Cargill.

The director responded by denying the claims, and levelling serious allegations against Mr Moss.

Last week, details of the audit’s findings concerning Mr Cargill were leaked to the press, however Grant Thornton’s findings – if any – concerning the claims against Mr Moss have remained hidden.

In yesterday’s application, Mr Cargill claimed that: “Contrary to its duty of fairness, the Minister of Labour and National Insurance failed to disclose to the applicant the report of Grant Thornton relating to the complaints that the applicant had made against chairman Gregory Moss.”

He also claimed that the accounting firm consistently refused to provide him with its “terms of reference, questions or issues to be discussed to enable the applicant to respond adequately to the review.”

Mr Cargill said other NIB employees were provided with a list of questions prior to their interview by Grant Thornton.

He also complained that the accounting firm released its report without interviewing him, and “manifested a clear intention” not to seek an interview.

In his application, Mr Cargill claims that as soon as he learned about the audit, his lawyers wrote to Grant Thornton’s partner Kendrick Christie, requesting a copy of the terms of reference, but got no reply.

In another letter, the director said that he told Mr Christie he was “available, eager and willing to assist,” but again he got no response.

After writing to the firm’s managing director Paul Gomez, Mr Cargill said he got a response indicating that Grant Thornton had no questions for him at that time, but would meet with Mr Cargill to answer any questions he might have.

When he was finally appraised of the scope of the investigation, Mr Cargill said he again offered his assistance, but there was no reply.