The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE Ministry of Public Service issued ‘show cause’ letters yesterday to ten people implicated in a Department of Education scheme that defrauded the government of $450k, signalling the government has began the process of terminating the employees.

Auditor General Terrance Bastian, in a report dated September 12, 2018, found that staff of the department perpetuated a $448,230 fraud by manipulating a system for stipends and honoraria.

The Tribune reported yesterday that though the Office of the Attorney General recommended in April that ten people face disciplinary action in connection with the fraud, it seemed no one had been punished, prompting concern from some public servants familiar with the matter.

In connection with the scheme, there was no accompanying formal approval from the Ministry of Finance, Ministry of Education and Ministry of Public Service for the fraudulent payments. In one instance, an assistant accountant received 43 honoraria payments of $125,505 in 44 months while another accountant received $61,113 in 32 instalments in 20 months.

Lorraine Symonette-Armbrister, permanent secretary in the Ministry of Education, told The Tribune ‘show cause’ letters were submitted to ten people yesterday on the direction of the Ministry of Public Service. The employees will have to now defend themselves against various allegations in order to avoid disciplinary action.

Meanwhile, Superintendent Matthew Edgecombe, head of the Anti-Corruption Unit of the Royal Bahamas Police Force, told The Tribune his department is still investigating the matter. He said officers have no timeline for completing their investigation.

The Tribune obtained a copy of the recommendation of Shane Miller, director of legal affairs in the AG’s Office, concerning the matter. The document, dated April 29, 2019, was addressed to the permanent secretary in the Ministry of Public Service.

Mr Miller wrote: “We have been informed by the treasurer that as a result of the (auditor) report, all of the officers have since been relocated out of the Department of Education and corrective measures have been implemented in the accounting procedures. Furthermore, the treasurer has a contingency plan to replace relevant officers should dismissals be warranted. The treasurer on behalf of the financial secretary held meetings with the audit department, the department of public personnel and the Office of the Attorney General and requested the OAG to advise on the matters.

“The Ministry of Finance, who has control of all of the accounts officers in the public service, has decided to take action against some individuals who are employees for misappropriation of funds which occurred during this time. As a result of findings of the report, it was initially decided that action would be taken against 24 persons. However, the Office of the Attorney General advised that the department should ensure that the persons charged have infringed specific law/policies/regulations and that there was substantiating evidence to support the allegations. As a result, it was decided that action would be taken against ten persons.”

The Public Service Commission Regulations characterises the disciplinary actions public officers could face.

“Upon review of the matter and in accordance with the relevant legislation, we advise that show cause letters be issued to the ten individuals pursuant to regulations 41 and 43 of the Public Service Commission Regulations,” Mr Miller said in his letter. “We have enclosed drafts of the letters to be reviewed, completed and signed by the permanent secretary of the Ministry of Public Service and issued to the relevant individuals.

“In drafting the show cause letters, we have taken into consideration the following legislation: the Public Services Act; the Public Service Commission Regulations, the Financial Regulations; the Manual of Cabinet Proceedings; the Bahamas Government Human Resources Policies Manual March 2017 and the Financial Administration and Audit Act.”