The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE Union of Tertiary Educators of the Bahamas renewed its call for The College of the Bahamas to conduct a forensic audit before transitioning to a university yesterday following COB’s announcement last week that police are investigating an alleged incident of employee fraud.

The incident, sources tell The Tribune, involves more than $25,000.

In a press statement yesterday, UTEB President Mark Humes praised COB’s administration for being transparent in disclosing the alleged fraud scheme but added that a police investigation into the matter is not enough.

Mr Humes said: “The Union of Tertiary Educators of the Bahamas (UTEB) was very disturbed by last week’s unfortunate news that The College of The Bahamas had been hit by yet another alleged incident of employee fraud. Last week’s matter of alleged fraud is the latest in a series of public incidents that has caused the union, on numerous occasions, to call for a forensic audit of the institution’s finances.

“In November of 2009, the past president of UTEB, Ms Jennifer Isaacs-Dotson, wrote the prime minister requesting a forensic audit be carried out. In May of 2010 UTEB again made a call for a forensic audit of the college when the media revealed that COB was in breach of its unrestricted fund covenant. In December 2013 the employee unions called for an investigation audit when $12,000 went missing from the business office.”

“In light of this most recent fraud report, coupled with the troubling information from the Baker Tilly Gomez management report which outlined the systemic failures in COB’s financial practice and processes, transparent and efficient corporate governance could best be demonstrated by conducting a forensic audit of the institution and the institution’s finances and making the results of that audit public. UTEB is once again renewing the call for college officials and the minister of education to do the responsible thing and conduct the forensic audit - sooner rather than later - and show taxpayers, whose dollars support the institution, that COB is about the highest level of transparent and efficient corporate governance.”

In an interview with The Tribune last month, COB president Dr Rodney Smith said he would not oppose a forensic audit of COB.

Mr Humes added: “At this most crucial time in the college’s movement, the college president and education officials should see it as a very important part of their fiduciary responsibilities to the nation to have a forensic audit carried out. COB should not move forward with transitioning to university without one – particularly when we consider the financial failings of such international and local companies as Enron, Banco Ambrosiano, and CLICO, each of which had extensive records of apparent financial normalcy and stellar financial audits, only to have that appearance and those audits discredited when years of financial mismanagement and wrongdoing were uncovered. Because of the seriousness of the financial matters at hand, the college owes it to the Bahamian people and must conduct a forensic audit; let the chips fall where and on who they shall. Again, the union is calling for the audit to be conducted before the college transitions to university, and we are asking for the Bahamian public to do the same.”

Last month, The Tribune revealed that an audit performed by Baker Tilly Gomez revealed that COB had weak internal controls, leaving the college susceptible to theft.

COB has since initiated a number of reforms to improve its financial management, according to school officials.