The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

MINISTRY of Education officials were to meet with investigators of the Royal Bahamas Police Force’s Anti-Corruption Unit yesterday to discuss the parameters of a probe into suspected collusion among employees who are believed to have defrauded the government of almost $450,000.

A high-ranking source in the Minnis administration confirmed the planned briefing yesterday, adding the government is taking this matter very seriously. However, no one has been fired as officials are said to be waiting on the outcome of the police investigation, which could take several weeks, the source said.

Education Minister Jeff Lloyd is also said to be adamant that stealing will not be tolerated in his ministry and should be punished, The Tribune understands.

Meanwhile Assistant Commissioner of Police Paul Rolle has said the Financial Crimes Unit of the Royal Bahamas Police Force received a complaint relative to the Auditor General’s probe sometime last year and that it was something his unit was looking into. 

On Tuesday, he told this newspaper it was not on the Anti-Corruption Unit’s radar, however he later attributed that position to a communication error.

This week, The Tribune exclusively published Auditor General Terrance Bastian’s report into how honoraria and stipends were essentially abused in the Department of Education. This investigation unearthed “egregious acts” among some employees who were able to use an array of honoraria codes to perpetuate fraud to the tune of $448,230.68.

The report covered the period from July 1, 2014 to February 28, 2018.

It was not tabled in the House of Assembly even though logs show a receptionist in the lower chamber signed for and received it on September 13, 2018. What happened after it was accepted at the receptionist’s desk is also under investigation, according to House Speaker Halson Moultrie.

Addressing the issue at Parliament just after he tabled the report - which he said was again received from the Office of the Auditor General yesterday morning before the sitting commenced - Mr Moultrie said there will be changes to how reports of this nature are handled.

He said: “Because of reports that I’ve seen in the newspaper yesterday (Tuesday) and again today (Wednesday), I wish to address this matter.

“And while this matter in my estimation is not earth shattering, it is a serious matter and deserves attention.

“As I indicated, honourable members, you may have seen a story in the newspaper concerning an audit of the Auditor General that apparently was not tabled in a timely fashion. According to our ongoing investigation, this report was indeed sent to the Parliament by the Auditor General on September 13, 2018.

“The Auditor General has also been kind enough to supply us with a log indicating that the report was received at the receptionist’s desk and signed for by the receptionist. The report never reached the acting clerk of the Parliament and never reached the Speaker’s desk.

“However by some circumstance this report found its way to The Tribune newspaper and that is most unusual and most unacceptable.”

He continued: “I wish to assure honourable members that the Parliament has already taken steps to avoid any such delay in future.

“We have spoken with the Auditor General and agreed upon a change in the protocol of how future reports will be handled.

“One issue that we have resolved is that whenever there is an auditor’s report, we are requesting of the Auditor General to supply this Parliament with a minimum of 60 copies of that report so that all members of the House of Assembly and senators are able to receive their entitlement, which is an entitlement to every document tabled in this Parliament.

“As this investigation is ongoing I wish to make no further statement on this matter.”

During this special probe, Mr Bastian said a team observed what appeared to be several irregularities perpetuated by staff members using an array of honoraria codes.

The report defines honoraria as being granted to officers who are required to perform extra duties in addition to their normal duties for a specified period.

While the director approved these payments, there was no accompanying formal approval from the Ministry of Finance, Ministry of Education and the Ministry of Public service as is required. This meant there were no project justification letters including cost, financial clearance, virement of funds and appropriation transfer warrants provided by the Department of Education.

A virement is an administrative transfer of funds from one part of a budget to another.

“Since staff were able to perpetuate a fraud to the tune of $448,230.68 using the honoraria description it would be reasonable to ascertain that other unethical uses of other codes could have been used,” the report, dated September 12, 2018 noted.

In one instance, it was claimed that an assistant accountant received 43 honoraria payments of $125,505.82 in 44 months. At a separate time, another accountant received $61,113.18 in 32 instalments in 20 months while those with lesser jobs, including a general service worker received nine honoraria payments of $12,650 in 17 months.