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$3m sports contracts given out pre-election

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

CONTRACTS for work issued by the National Sports Authority were not transparent and its financial allocation from the government increased by more than $3.3m in the fiscal year containing the May 2017 general election, a newly released auditor general’s report has revealed.

Auditor General Terrance Bastian’s report further uncovered how one company received more than $1m in taxpayer funds, but did not complete any of ten deliverables promised to the NSA.

While the Auditor General’s report did not name any of the companies it referenced, research by Tribune Business reveals that the one which received the $1m despite not performing is global sporting and entertainment giant, Anschutz Entertainment Group (AEG).

AEG’s management and consultancy deal with the National Sports Authority (NSA) was much-touted by former prime minister Perry Christie, who even suggested the group could bring the Los Angeles Lakers and other sporting teams in which it has an ownership stake to The Bahamas (see today’s Tribune Business for further details). 

During the July 2016-June 2017 fiscal year, the then Christie administration’s allocation for the NSA was $3,912,153.29, the largest it received in five years.

This represented an increase of $3,388,577.87 over the year before when the authority received just $523,575.42.

Before that, in 2014/2015 it received $404,270 and then $212,242 in 2013/2014.

However in the July 2011/June 2013 fiscal period the NSA received $2,114,421. That fiscal period also contained an election.

The audit report, tabled yesterday in the House of Assembly, did not make clear if there were any findings by auditors that substantiated the increase in 2016/2017.

Auditor General Terrance Bastian’s report covered the period July 2011 to December 2017.

The award of contracts further received a scathing review by the Office of the Auditor General. Several contracts came under scrutiny and it was concluded there was no information on file to state how contracts were awarded.

More specifically, there was limited procurement activity recorded and money was doled out but work never completed.

The report looked at 11 separate contracts but none of the companies involved was named in the auditor’s report.

Among the contracts was one for work by an entity named for the purposes of the report ‘Company A’. The auditor said despite the company receiving $467,907.51, all of the deliverables were not met.

The report said: “We noted that Company A had entered into a consultancy agreement with the National Sports Authority in May 22, 2015 for a three-year period ending August 22, 2018 at a fixed fee of $40,000 per month and payable in quarterly instalments.

“The Ministry of Finance made direct payments to the company totalling $467,907.51.

“We further noted that the contract both in terms of specifications and conditions had shortcomings as all of the deliverables were never completed.”

According to the annex of the audit report not one of 10 deliverables was completed.

“We noted that the NSA Board made recommendations to cancel the company’s service contract in a letter dated May 22, 2017.”

This letter would have been sent after the general election, when the Free National Movement assumed office.

“However, the company at this point had already received a total of $1,191,579.91,” the report added.

“We further noted that there was little information on the company and as a result it made it difficult to assess contract management – post award – as an appropriate file was not maintained. The documents that were provided included the contract and invoices from the company. There was no information to show how this company was chosen.”

A second contract was awarded and neither the board nor the executive team seemed to be aware of the engagement, the report noted.

A senior government official on October 8, 2014 signed the contract but there were no documents on file giving approval to pay $193,548.04 other than a copy of an invoice. Additionally, deliverables in the contract were vague and provided no timeline for completion.

In another instance, it was noted a senior government official authorised to sign cheques in the Ministry of Youth Sports and Culture was off the island so executives made a decision to have cheques drawn as they were allowed to authorise for amounts up to $50,000.

The company in this case received three cheques in one day on one occasion.

“We noted that the Company H was paid an amount of $1,909,974,11 which covers the period of August 17, 2016 to June 16, 2017,” the report said. “We further noted that the bill payment report indicated three cheques written on the same day to the company.”

Each of the cheques totalled $36,490.57. However no mention was made of the date this was done.

“While executives are allowed to sign cheques up to $50,000, it is felt that management may have over-extended their authority to have the cheques drawn on the same date.”

The report furthered: “If procedures for cheques are not enforced, fraud can occur and go undetected.”

A separate contractor paid $1,030,424.71 did not appear to go out to tender and contract documents were not on file.

“As a result we could not determine if value for money was received.”

There were several other large contracts under similar circumstances.

The report also highlighted that there seemed to be a breakdown in the structure of the NSA’s executive team.

At the time of the audit the post of general manager and human resources manager were vacant. Both persons resigned and other support staff left the organisation for reasons unknown.

While Youth, Sports and Culture Minister Lanisha Rolle said yesterday she was not yet prepared to comment on the findings, the NSA’s management said, according to the report, it implemented procedures to improve documentation, payment approvals and procurement processes.

Additional accounting staff were also being recruited to ensure appropriate staff segregation of duties and manpower.

It said staff capabilities and manpower needs were also being looked at and prioritised.

Comments

K4C 5 years, 7 months ago

As Gomer Pyle would say "Surprise, surprise, surprise!"

Dawes 5 years, 7 months ago

Politicians have realised as long as they signed off on paying X company a large amount of money, although unethical it is not illegal. This way they can easily fleece the taxpayers and have no worries about every being charged. Govt should be forced to be transparent and let everyone know any agreement they enter into, what the deliverables are and how much so we can all judge for ourselves.

licks2 5 years, 7 months ago

Could you read. . .or listen without becoming a political hack? These tiefing scams are crimes. . .jailing works for you!! This een no time to act like jack asses and "protek" we peoples them. . .this is pure organized crime by cronies of the PLP. . .this their usual way of doing business in the name of the peoples them. . .now you come around here as expected defending them! But "unethical but not illegal". . .bouy carry ya "trifilin" political tail from around here with that nonsense. . .THEM CASES ARE PURE TIEFING. . .CRIMES!!

Dawes 5 years, 7 months ago

I do not think what they did is right, and i do not have any loyalty to either party. I vote based on who i think will be best for the country (well who would screw it up the least), which sometimes has been one colour and other times another. What i said was they have realised they have the authority to do these things and all they have to do is say they felt it was the right choice. Then nothing illegal done. Take that softball/ baseball stadium, a 5,000 seater that is a waste of money. It will never be full, but its a way of paying off one of their cronies and they haven't done anything illegal.

ThisIsOurs 5 years, 7 months ago

Een nuttin change. Post election odd contract awards still giving out. Why did Mrs Osbourne and Mrs Alston resign?

licks2 5 years, 7 months ago

What contracts. . .spill ya guts if ya have information. . .other wise. . .ACT YA AGE. What the heck those two people dem have to do with them sport PLP cronies them raiding the cookie jar?

TalRussell 5 years, 7 months ago

Yes, yes it has been just days shy 365 days after chief policeman's confirmed an investigation into the disappearance of a file on the controversial OBAN Energies project which reportedly went missing whilst in custody Imperial-red shirts own Environment, Science and Technology (BEST) Commission, yes, no?
Just shy 365 days - even if policeman's seem be in no rush, and even it it turns out be but a "fake ly drafted" missing report - should've by now have been looked at as very damn long time by comrades Auditor General Terrance and AG Carl Wilshire, yes, no.... can't just make, missing now near some 365 days up - and why has media been so silent in their refusal exposing all lies surrounding OBAN, yes, no?

licks2 5 years, 7 months ago

Talking fool as usual. . .the missing file is a very serious crime. . .but where were there any monies involved in the negotiations between government and Oban. Then if it is a "fake" file as you say. . .there would not be a file. . .so if the government says that a "flimsy" is missing, there was a "real" negotiation going on!

You so worried that the "red shirts" them doing nonsense but ready and able to protect blatant PLP high crimes just make no sense. If you know Mr. Bastian you would not venture to sully his name in your political retarded profile. . .HE WILL NOT LET HIS "MAR OF THE HOOK" . . .something that yinna PLP can't muster up even if all of yinna come together in one flat bed truck!!

bogart 5 years, 7 months ago

EXCELLENT DETAILED ARTICLE..........BY EXCELLENT DETAILED AUDIT BY COMMONWEALTH OF THE BAHAMAS AUDITOR GENERAL TERRANCE BASTIAN...............ACCOUNTABILITY...?????...MISSING FILE.....??....WHO GETS SALARIED JOB TO DO DIS IN UNDER GUBBERMINT ADMINISTRATION......??.....NEGLIGENCE....?......FRAUD.....??.......GROSS INCOMPETANCE.......??........NOONE.. FIRED....??.....NOONE RESPONSIBILITY.......???????????????.....BUT.....BUT.....BUT.....BUT.....PORE TAXPAYERS GET REGRESSIVE VAT TAXES......AN ONE.... EXTRA LIC A EXTRA 4.5% ADDED REGRESSIVE VAT....TAXES....ON DONE PORE BAHAMIANS ALREADY DONE SUFFERING from previous VAT..........AN ALREADY WE PORE GET EXTRA KICK IN DA HIP.....AS DESE ELITES...ECHELONS...COHORTS...CRONIES....LOSE WE PORE TAXPAYERS MONEY.......... AN GETS SALARIES FOR DOING IT.....AS DEY KICK WE TAXPAYERS IN DA HIP......AN TEAM SEEMS TO BE HIDING ON DA FIELD....REFEREES HIDING ON FIELD...IN FULL VIEW......AN STANDS FULL OF SPECTATORS.locals..ferreigners...guests...jonsers...dgrade...jungalists.well educated..pore...wretched..errybody....IN SHOCK AN AWE......!!!!!!!!!!

TigerB 5 years, 7 months ago

Just wondering with administration was in power between 2011 and 2017??? hummmm

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