The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Royal Bahamas Police Force has been summoned to investigate the disappearance of $25,400 at the Freeport Passport Office, which has resulted in at least one official facing “disciplinary action”.

The Ministry of Foreign Affairs called in the police upon the recommendation of auditor-general Terrance Bastian, whose department found that monies received over a four-month period during summer 2015 were not deposited to the Treasury’s bank accounts.

The ‘special audit’ of the Freeport Passport Office, which examined the 14-month period ending on August 21 this year, found that while its cashbook was updated daily for revenue receipts, no such action occurred when it came to deposits.

“It is clear that adherence to sound internal control practices were not adequately exercised as related to the upkeep and maintenance of the Department’s cashbook,” Mr Bastian concluded in his signed report.

He called for the duties of revenue collection, recording and depositing to be properly segregated to eliminated the opportunity for public officials to “perpetrate and conceal a theft”.

Detailing the consequences for the Passport Office, Mr Bastian said: “Persons responsible for the maintenance of this cashbook must explain why the cashbook was not updated for daily deposits and, further, not discovered for almost four months.

“Consequently, during a period of four months, 19 days’ of revenue receipts (public funds) totalling $25,400 were not deposited to the Government’s bank account.

“In light of the foregoing information, I recommend that this matter be referred to the police for further investigation.”

While some may regard the amount of funds involved as relatively insignificant, Mr Bastian’s report highlights the impact that small, low level, ‘every day’ corruption has on the Government’s finances and the taxpayer - especially on the delivery of services to the public.

Such incidents, if repeated widely throughout the Government and public service, ultimately starve the Treasury of much-needed funds at a time when it needs every penny it can get.

The cumulative effect also results in increased taxes for every Bahamian, as the Government cannot earn enough revenue, while undermining efficiency and effectiveness in the public service.

In response, the Ministry of Foreign Affairs confirmed that it was following Mr Bastian’s recommendation to turn the case over the police, with “disciplinary action” also initiated against one unnamed official.

It also pledged to ensure that staff duties were segregated, and that funds were picked up daily from the Freeport Passport Office by armoured car.

“The Ministry is working with the Ministry of Finance and the Treasurer to ensure that accounting staff and senior management are fully versed in sound internal controls,” the auditor-general’s report read.

“In addition, with the support of the Ministry of Finance, systems will be implemented to allow the Passport Office to receive payments by credit or debit card to minimise cash transactions.”

Mr Bastian said that between July 1, 2014, and August 21, 2015, the Freeport Passport Office’s records showed that $301,175 was collected for processing passports and identity certificates. Yet just $275,775 was sent to the Government’s bank accounts, thus creating the $25,400 shortfall.

The 19 days in question were all between May 20, 2015, and August 17, 2015. For those days, the auditor-general noted there was an absence of ‘bank-stamped deposit slips’ or Treasury receipts, as was the normal practice.

“Bank-stamped deposit slips and Treasury receipts are integral documents for updating the cashbook daily,” Mr Bastian’s report read. “Yet revenue was collected and not deposited over a three-month period (May 20-August 21) and was not identified by the passport staff responsible for maintaining and updating this department’s cash book.”