The Tribune

MORALE at the Water & Sewerage Corporation has taken a nosedive after EY’s critical audit report, the latest sore point for an institution that was able to resist controversy until recently, General Manager Glen Laville said yesterday.

The report, which exposed irregularities, political interference and wastage of millions, comes as some employees of the corporation have faced criminal charges in the last year even as the cloud of another police investigation hangs over the corporation.

Speaking to The Tribune, Mr Laville disagreed with several of the issues raised in the EY report that concerned him.

Investigators had revealed that Mario Bastian, a “close friend” of Mr Laville, secured a lucrative $3.2m contract with the corporation despite being fired twice. EY concluded that the tendering process for the contract gave the appearance of bid manipulation.

EY noted that the company, ACO JV, was awarded the contract despite displaying characteristics that had disqualified other potential vendors.

Mr Laville, nonetheless, insisted yesterday that he lacks the power to ensure anyone is awarded such a contract, noting such decisions are made by Cabinet after input by WSC’s board. He said the contract was approved by the Caribbean Development Bank as well, although EY’s report shows in several instances that the CDB rarely dissents when government officials recommend someone to receive a contract.

Mr Laville also questioned the relevance of a communication highlighted in the report between him and Dave Taylor, a surveyor who performs services for WSC as a subcontractor.

In the correspondence, Mr Taylor wrote to Mr Laville: “Can I stop in to drop off the cash to you now?”

Mr Laville told investigators the message referred to membership dues for the Bahamas Association of Land Surveyors, for which he is treasurer.

EY, however, said Mr Laville provided no documentation supporting that the money was deposited in BALS’ bank account.

Mr Laville said: “I advised that going to the bank to deposit $100 doesn’t make any sense. I don’t go to the bank and deposit it every time I get a membership due. Furthermore, it was just $100, to even raise it as an issue…

“I admonished the auditors not to make conclusions and seek information to support it. By the inference that somehow this was an improper activity or whatever, in this small country, it would call into question anytime anyone anywhere brought me membership dues.”

For Mr Laville, the report had a sobering impact.

“One of the things it has taught me more than anything is I usually tell all of my workers to persevere, do what you have to do, stay on the straight and narrow path and things will work out, but this proves that is not always the case,” he said. “It doesn’t matter how professional and how much integrity you possess while doing your duties, someone can come along and make you look like you are the greatest criminal in the world.”

He said: “It has already impacted morale. It started early last year where morale was affected by a number of things that were going on particularly when myself and the chief financial officer (Robert Deal) were put on administration leave and not given a specific reason as to why. This is a blow to staff because people who work diligently trying to carry out their work have to have these kinds of things said. We had stayed away from major controversies over the years.”

Mr Laville said WSC’s annual reports have showed the corporation’s improving performances. Its 2015 report, prepared by Baker Tilly Gomez, showed improvement in reducing non-revenue water produced in New Providence, ensuring substantial savings.

Mr Laville said he nor anyone else in the corporation saw EY’s report before yesterday. The report was tabled in Parliament by WSC chairman Adrian Gibson on Wednesday.

“Of course, that troubles me,” he said. “Some issues supposedly resolved during interviews still appear to be highlighted.”

He said he met the permanent secretary and Mr Gibson on Monday to discuss the audit.

He said officials spoke “in general terms but when I asked for details they were not specific”.

He said he does not know if his job as general manager is secure.

“As I tell successive governments,” he said, “I serve at the pleasure of the government. This is an appointed position and not one with tenure.”