The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Auditor General’s findings of multi-million dollar losses at the Road Traffic Department due to “collusion” and “fraud” have been turned over to the Royal Bahamas Police Force for investigation, a Cabinet minister said yesterday.

Glenys Hanna-Martin, minister of transport and aviation, said new “internal controls” have been implemented at the Department following the release of the damning report.

    “The Controller, who has day to day oversight,  has given a full analysis of the report, and has now shared the pertinent information provided by the Auditor General with the Royal Bahamas Police Force to investigate findings of alleged malfeasance,” said Mrs Hanna-Martin

“Additionally, the Controller has introduced new internal controls based upon recommendations contained in that report. He has updated the Department’s Procedures Manual and implemented internal control procedures to improve accountability and improve revenue collection.

“The Department will implement additional measures at its headquarters’ site as well as the two additional sites in New Providence.”

    Terrance Bastian, the Auditor-General, in a report that covered the three-year period to June 30, 2015, warned of a severe lack of order and control over the assets and revenue collection at the Road Traffic Department, revealing millions in losses from vehicle license revenue due to employees and motorists “circumventing rules and regulations”.

    At a minimum, it is believed some $10 million in vehicle license revenue is being uncollected. Mr Bastian also highlighted instances of apparent fraud and “collusion” involving inspectors, writers and cashiers as they carried out daily tasks.

    Mrs Hanna-Martin said: “The Road Traffic Department is a critical agency as a revenue generator to the Public Treasury, and for the establishment of standards for ground transport in the Bahamas. It is an agency, however, that has received little investment for an extended period of time, and as a consequence operates with antiquated systems and in a deteriorated environment.”

Mrs Hanna-Martin said the Auditor General’s findings could easily have described the Department’s condition five or 10 years ago.

“What the current Auditor General’s report notes, but omitted in previous reports,  is that there has not been a vehicle register for many years in that Department according to my advice,” she added.

“This observation, that is the absence of a vehicle register, as far as we have been able to ascertain, is for the first time ever mentioned in any report.

“This observation also  formed the basis of a forecast of loss of revenue of some $10 million based on an extrapolation founded upon assumptions,.”

Mrs Hanna-Martin said the Road Traffic Department was being modernised  to improved efficiencies, enhance customer experience and produce greater accountability in the collection of public revenue, as well as the avoidance of fraud.

“This will be the case not only in New Providence but throughout the country,” she added. “This is known as the Ministry of Transport and Aviation/Road Traffic Department modernisation process for drivers licenses and motor vehicle registration, which  is soon  to be officially launched. 

“Vehicle licensing will begin roll-out at the beginning of October, and drivers license at the beginning of December. The roll-out will be completed by February 2017.”

   Mrs Hanna-Martin said the production of license plates was also being addressed. “We have been ahead of this concern, and have completed a request for proposal (RFP) process that was published on January 25. Two companies submitted proposals to the Tenders Board on February 19, 2016,” she added.

“Following the submission, an evaluation committee made up of personnel from the Ministry of Finance, the Bahamas Correctional Service and Road Traffic met and completed the  evaluation process.

“The selected submission will be shortly submitted to the Tenders Board, and thereafter be submitted for Cabinet approval. The estimate cost $800,000 to $1 million.”