By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
THE acting director of the Bahamas National Drug Agency has sued accountant John Bain and his firm, UHY Bain & Associates, over allegations made about him in a forensic report into the Public Hospital Authority’s supply of pharmaceutical drugs and medical supplies.
The forensic report, the contents of which have been widely publicised, suggested that Bahamas National Drug’s (BDNA) Acting Director Dr Marvin Smith acted fraudulently and was “involved in a suspicious transaction with an unqualified supplier”, a writ filed in the Supreme Court on October 16 said.
According to the court document, Dr Smith is seeking “exemplary and aggravated damages” along with a public apology and retraction of the forensic report.
Mr Bain, however, dismissed the lawsuit as “frivolous” when The Tribune contacted him for comment yesterday, adding that he has indemnity from such lawsuits as part of his contract with the PHA.
According to Mr Bain’s forensic report, in 2011 Dr Smith, as deputy director of the BNDA, “circumvented the tendering process by ordering ‘urgent’ supplies that apparently were not in demand, that benefited a supplier, National Supply Inc., who was not at the time the approved supplier for the oncology drugs ordered.”
The audit suggested that Dr Smith may have carried out the transaction under questionable circumstances, adding that as an eventual consequence the PHA was “defrauded out of over $11,500.”
According to the writ, Mr Bain’s audit implied that Dr Smith was “dishonest and corrupt and imputes” that he is the alleged owner of a company transacted to do business with the PHA/BNDA in a “self-dealing” way.
“Further the defendant (Mr Bain) published the said words maliciously in that he knew they were false, and or alternatively was reckless as to whether they were true or false and intended thereby to injure the plaintiff in his personal and professional capacity,” the writ said.
“The said report was forwarded via email on March 31, 2014 and subsequently forwarded to Mr Frank Smith, chairperson, Public Hospitals Authority for the attention of the ‘members of the board of directors.’
“Additionally, copies of the said report were provided (leaked) to The Nassau Guardian and The Tribune and excerpts of the said report were published in both dailies during the week commencing October 6. By reason of the publication of the said words, the plaintiff has been injured in his personal and professional reputation and brought into the public scandal, odium and contempt,” the writ said.
Dismissing the lawsuit yesterday, Mr Bain said he stands behind his forensic report, adding that he is willing to testify in court to the validity of his findings.
He added: “I never gave The Tribune or The Guardian any report, but I have no fear. I’ll be glad to reveal what I have to a judge who can draw his or her own conclusions.”
The Tribune was unable to get a response to the lawsuit from PHA officials before press time yesterday.
Comments
Publius 10 years ago
Why would this suit only now be filed when this report was completed in March and already in the hands of the PHA by then? Can someone say farce? And has anyone realized that the public is a discussing a report they have never actually seen? Not one member of the general public knows what is in this report from what isn't. We only know what is supposedly being "leaked" to certain media personalities. This is how the masses worldwide stay controlled and deceived.
justthefactsplease 10 years ago
"He has indemnity from such lawsuits as part of his contract with the PHA" ... is this normal practice? Why would he need indemnity if he can back up every thing he has in his report? Last I checked the truth was an absolute defense against any claim of defamation against you. The more I read this saga the more I am of the opinion that these "audits" weren't really meant for the right reasons and can't stand up to scrutiny.
DreamerX 10 years ago
Professional indemnity insurance is standard practice for certain levels of management and professionals.
GrassRoot 10 years ago
would be very surprised if the policy were to cover gross negligence/intend to defraud employer or third parties. What is relevant is that these people may be criminally responsible for what they have done, so no insurance policy for that.
justthefactsplease 10 years ago
True, but professional insurance and PHA's indemnity does not protect you from being sued in your professional capacity ... as a matter of fact, that is why you need the insurance in the first place. My focus here though, is why would I indemnify you if you are sued since I only hired you to do a job...if you do it right there should be no law suits. Maybe they told him what to put in the report with the understanding they will pay any damages he get stuck with. This is getting really interesting.
GrassRoot 10 years ago
agreed, however irrespective of what colors a public servant is wearing, if any at all, someone out there will throw dirt at you. The insurance policy's main objective then is also to defend unwarranted lawsuits and effectively paying your legal fees. As we all know, the lawyers in the Bahamas are pirates as well and don't really care about the merits of a case as long as they get paid. Keeps at least that part of the economy going (thank you Mr. Bacon, Nygard, Weisfish, Genting People etc....).
duppyVAT 10 years ago
Sounds like when politicians threaten to sue!!!!!!!!!!!! A good STFU strategy.
GrassRoot 10 years ago
seems he has more confidence in his friends at the court than in the Government.
John 10 years ago
Yesterday John Bain claimed that the PHA was trying to discredit him and his accounting firm. Today John Bain labels the lawsuit brought against him and his company by BDNA as 'frivolous". Shouldn't John Bain have gotten legal advice by now that says something like "shut up" and allow the law to take its course.
TalRussell 10 years ago
Dear Comrades
(Comrade Tal's Report PM Christie’s Progressive Era)
Dame "Dutchess" Marguerite, GCMG expels media interviews from atop Mount Fitzwilliam. All missing is Da Duke, former King England?
PM and DPM refuse reveal what they know about $600 million Letter of Intent .
Younger PLP’s come under attack by their own PLP’ colleagues.
Auditor submits $10 million Missing Drugs Report as required when hired by government ... but still gets has ass sued?
No way I just made this ridiculous up.
GrassRoot 10 years ago
and that is the short list you presented.
dehavmoss 10 years ago
The main issue here is why Frank Smith and Dr, Perry Gomez kept this report quiet for over 6 months despite having an obligation to advise the public. What is the Prime Minister doing in lieu of this? When did he become aware of the audit findings.
I hope the lawsuit by Dr. Smith goes to court, because this will be the only way that Bahamians will be able to get more information on the audit report.
GrassRoot 10 years ago
yes, they should admit the report and make it part of the public domain.
happyfly 10 years ago
when the PLP got in power, Franky's family went in to the drug supply business. once they cleaned out all the PHA budget for supplies, they tried to get a loan and the bank required the audit. the audit found they stealing money out of the health care system and the hospital cant afford drugs for sick people. that is why they tried to keep the audit quiet and that is why everybody carrying on.
John 10 years ago
Are you sayin Franky an he whole family was t'iefin
GrassRoot 10 years ago
so here is another angle, isn't Dr. Smith a government employee? How about the police starts to look into the corruption charges raised by the report? This has far gone on a different stage. If he acted in a corrupt way, give him a sentence, put him away, if not, all is dandy.
ThisIsOurs 10 years ago
Weird, if this report was circulated in March, why is he just suing him now?
GrassRoot 10 years ago
public fallout got too big. the boyz hoped to keep tis under the carpet. did not work. Have to say though, that you must have big balls to order a forensic report if you know you have something to hide (and even if its only an issue involving responsibility and oversight and not stealing from the Bahamian public).
citizenx 10 years ago
the media and the public now know so it's better to be the victim. If you have nothing to hide then why hire a lawyer and sue? It's the classic case of "get them before they get you" by putting the focus elsewhere; it's a smoke screen by the acting director people....
GrassRoot 10 years ago
High Noon. Only uneducated people kill each other with guns, ey?
The_Oracle 10 years ago
First mistake? The assumption that you (we) matter or hold any significance in the political's mind over this or any other situation including your livelihood. Second, assuming that they have a moral or ethical compass or care one wit what anyone thinks about whatever they're doing. We have lost our country, they just haven't shut the doors yet. Maybe we can use the TIEA agreements to find the pillaged stashes they've all hidden in foreign lands. Just like Pirates, bury the loot.
concernedcitizen 10 years ago
Thats why they hire foreign consultants for every friggin thing ,to get money out of the treasury and abroad ,,,,million dollar contract has built in 200,000 for the boys ,,come on gaming consultants from Africa
ThisIsOurs 10 years ago
Hmm...the PHA accepted the audit report, which apparently also included concerns about the accounting for the critical care block....hmmm...I wonder if you can sue someone for threatening to sue you....
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