By RASHAD ROLLE
Tribune Senior Reporter
rrolle@tribunemedia.net
THE Bahamas Public Parks and Beaches Authority will terminate all current contracts after external investigators found numerous lapses in its functioning and internal controls.
McKell Bonaby, chairman of the authority, suggested on Friday that as many as 1,400 contractors will be affected by this.
During a press conference at the Office of the Prime Minister, Press Secretary Clint Watson said the contracts will be terminated in a legal manner so that contractors who have a valid contract will be paid.
“However,” he said, “they will now be paid in a way that fully complies with all existing laws, regulations and best financial and accounting practice.
“Given that there is no information on file relating to the ‘Know Your Customer’ requirements, every contractor will be required to attend in person at a venue to be announced shortly and provide the basic KYC documentation for the maintenance of proper internal records of the authority.
“They will have to produce a document or documents to prove their identity (such as a passport, driver’s licence or NIB card), they will have to confirm their bank details, and they will have to be tax and NIB compliant, as the law requires,” Mr Watson said.
Mr Bonaby said some 300 general service workers will fill the void after current contracts are cancelled. He said by mid-January the authority expects to “rightsize the ship,” allowing those workers to return to their usual duties.
K Christie and Co Chartered Accountants conducted the operational review of the BPPBA. The firm said it did not perform an audit of the authority; the experts merely conducted a review requested by the Ministry of Finance, one that does not fit the requirements of an audit as outlined by International Standards on Auditing or International Standards on Review Engagements.
The probe found the authority went tens of millions of dollars over budget despite there not being any “real needs on the ground” for this overspend; found inconsistencies in signatures on contracts; and VAT returns were not filed, among other lapses.
“We did not identify the exact need for extra budgetary allocations and there is speculation that it was fuelled more by the demand and requests for economic stimulation than by any real needs on the ground,” the report said.
From July 2019 to June 2020, the authority received a budget of $19.1 million but spent $25.9 million in the end, an overspend of $6.8 million.
From July 2020 to June 2021, the authority spent $28.8 million, $13.7 million more than budgeted.
The authority was on pace to similarly overspend its budget in the latter portion of this year, having spent $9.3 million from June to October 31 after receiving a budget of $15.2 million.
Investigators said contracts showed inconsistencies in the signature of former Executive Chairman Shanendon Cartwright, Member of Parliament for St Barnabas.
“All contracts were signed by Executive Chairman Shanendon Cartwright, MP and board Secretary Marisol Morley. Three different signatures purporting to be that of the Executive Chairman were affixed to contracts. The authority could not produce a specimen signature or A/B signatory list to confirm the proper signature that should have been affixed to contracts,” the report said.
Investigators also found the authority signed and dated some contracts ahead of the vendor/witness signing and that some contracts were missing from the PDF files they reviewed.
Not only were some contracts not witnessed, but the authority also does not require official Know Your Customer (KYC) identification from vendors.
“These forms of ID are standard information and at a minimum establish that the authority is dealing with the proper person,” investigators said. “Multiple contracts have been issued to individuals using different company names. These individuals have anywhere from one to ten contracts; for example, contracts have been issued to 3M Printing, 3M Car Rental and Oscar Thurston, who are one and the same.”
Mr Watson added: “Multiple contracts have been issued to individuals using different company names. These individuals have anywhere from one to 10 contracts, some of them totalling hundreds of thousands of dollars.
“At the height of the pandemic when the whole country was locked down and Bahamians were not allowed to visit parks or beaches, the authority awarded contracts and increased expenditure on contracts to clean those parks and beaches that were closed.
“Contracts were awarded to sweep roads at a time when people weren’t allowed to be on the roads. When some people were fined for selling coconuts on the side of the road, one road sweeper was paid $17,000 to sweep roads just three times a month using electronic electric sweeper. This particular contract paid the contractor $775 per mile. Again, given that the country was in full lockdown, it is unclear whether the contractor was allowed out of his home twice a month in order to fulfil the contract”.
Investigators found that board meetings were not held, monthly reporting was not done, bank reconciliations were not done and VAT returns were not filed.
Furthermore, a review of contracts awarded per constituency found that the Killarney constituency—represented by former Prime Minister Dr Hubert Minnis—received most of the contracts.
Investigators said: “Killarney constituency received the largest portion — 12 percent or $373,100 — of total contracts awarded and the constituency received the lowest at one percent or $43,600. We noted that Killarney has six park and ten beach designations and Englerston has four park designations.” Mr Watson also said: “Multiple contracts have been issued to individuals using different company names. These individuals have anywhere from one to 10 contracts, some of them totalling hundreds of thousands of dollars.
“At the height of the pandemic when the whole country was locked down and Bahamians were not allowed to visit parks or beaches. The authority awarded contracts and increased expenditure on contracts to clean those parks and beaches that were closed.
“Contracts were awarded to sweep roads at a time when people weren’t allowed to be on the roads. When some people were fined for selling coconuts on the side of the road, one road sweeper was paid $17,000 to sweep roads just three times a month using electronic electric sweeper. This particular contract paid the contractor $775 per mile. Again, given that the country was in full lockdown, it is unclear whether the contractor was allowed out of their home twice a month in order to fulfil the contract.
The board, auditors said, met only once during the 15 month period under review. “We noted no documented corporate governance policy of the board in place,” their report said.
“We noted no monthly reporting by the managing director to the board of the condition of BPPBA, including financial performance budgets, etc. A monthly expense report is sent to the finance officer at the Ministry of Finance, as required of all departments.
“Because of these deficiencies, we are unable to say whether the board was fully aware and seized of the financial implications of its decisions.”
Investigators also found an Accounts Department that is woefully under-resourced to fulfil its functions.
The report said: “The entire Accounts Department consists of one senior accountant, who while diligent at the post does not hold professional qualifications. The size and complexity of the authority’s average annual expenditure require a highly skilled accounting department with expertise in financial control and compliance to ensure proper financial management.
“A financial controller, assistant financial controller and accounts payable clerk are basic and essential positions for a corporation handling several hundred contracts and a multi-million-dollar budget. Additional staff with strong accounting background are required to adequately staff and maintain good standards for accurate monitoring and reporting, etc.”
Investigators wrote: “This operational review revealed a combination of material weaknesses and significant deficiencies that created an environment to facilitate such overruns.
“The material weaknesses stemmed principally from the board’s failure to exercise oversight by meeting regularly and requiring reports that would enable it to monitor the budget versus actual performance of the authority. Additionally, the procedures within the Accounts and Inspection Department lack checks and balances that can militate against errors, improper behaviour, and other risks. Deficiencies were reflected in the authority’s inability to reduce risks and incorrect information.”
Comments
stillwaters 3 years ago
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stillwaters 3 years ago
Thanks for showing us immediately how the money is being spent. Now how about showing us immediately how the money is being spent on the travelling of this administration to date? In the spirit of full disclosure.
carltonr61 3 years ago
Minnis and sands operating rogue and politically undignified by cutting deep into the hidden and quiet storm between political parties. Sands even ahead of WHO/PAHO in knowing sever sever outbreak emergency will be pressed once again upon the world. As the narrative of fear is growing thin and the world has gotten used to the routine that leads to lockdown and control. Just why he calls on bahamas to return to fear is scripted in sync with 4C fearmongering even before an event takes place. CDC must be waiting to drop a level 4 on the world to shove it back into Vax 4 and 5 then 6.
truetruebahamian 3 years ago
Sands has a fully functioning brain, I believe that your jealousy in not having the same is reflected in your wordy submissions.
Sickened 3 years ago
“We did not identify the exact need for extra budgetary allocations and there is speculation that it was fueled more by the demand and requests for economic stimulation than by any real needs on the ground,” the report said.
The above can be said for every single government agency and ministry. We hire simply for votes and to give people some sort of income. 80% of civil service are not needed.
ThisIsOurs 3 years ago
Not sure why the focus on Beaches and Parks. Its impossible for a ministry to exceed their budget expense without full cooperation of the Ministry of Finance.
They seriously want us to believe that for 3 years straight a ministry was able to blow its budget by 10's of millions and nobody stopped it? Hubert Minnis wasnt aware? The Minister of Finance wasnt aware? The FS wasnt aware? Shenandon Cartwright went rogue and did this all on his own.
I suspect this was dropped to kill the carnival story Why havent we seen the report from the NSA?
The administration got off to a great start dont blow it with politicking
DontAssume 3 years ago
This administration did not get off to a promising start. There are many horrible characters disguised as individuals that have this country's best interest as a priority, but all of it is self-interest. The deflection-purposed reporting and continual politicizing of every facet of our society are ridiculous. The three-month spending is outrageous (entourage-laden trips all over the world that seem more like bucket list voyages), and conflict of interest appointments are not improving the way of life in this country.
Dawes 3 years ago
Perhaps they are worried about Cartwright as he was still able to win in an area that should be a PLP stronghold, even with the swing to PLP this election. Am sure every single department has these issues they just decide to take down the most challenging ones, knowing they are doing the same right now.
ThisIsOurs 3 years ago
I go with carnival. Its the first time Brave spoke on the topic and a new juicy story drops at the same time with "immediate" release. When since have they immediately released anything? We still waiting on release of the other report that Clint called a "very interesting read" and that was months ago. This was timed to coincide "with" something
bahamianson 3 years ago
That did enter my mind. He is an obvious threat, so they will go after him
stillwaters 3 years ago
This matter was probably dropped so that cancellation of all these contracts can have a very thin veneer of legitimacy. PLP supporters are waiting in the wings for these very same contracts.
tribanon 3 years ago
In addition to corrupt elected officials, we are having to contend with decades of corrupt senior civil servants all the way up to permanent secretaries in some instances.
The_Oracle 3 years ago
It would be very hard to deny just how unfit to Govern they all are. Lock Stock and barrel. The whole "look here what we found" is sleight of hand, a distraction, doomed to be repeated by the next set of elected pillagers.
TalRussell 3 years ago
Mighty curious if "Big Fella" Clinty, accurately is willing to vouch as to any location, any where's on any UK Colony's 1200 Out Islands, Cays, Inlets and Rocks, that remotely resembles de white building is featured in de blue background wall mural and everything else like this and that is intended youse to believe this photographic ruse, is actually a picture taken of de Office of the UK Colony's Premiership (OOUKCP).
You just isn't suppose make such an official ruse up and then expect a popoulaces to fall hook line and sinker with such emphasiee on official (OOUKCP) .bullshi# of a stinker,― Yes?
M0J0 3 years ago
Pintard has already admitted that Dr.Minnis did not pay since July. The audit if any have seen it is quite disturbing once you see the facts. Cancellation and total cleaning of the office is very much so needed.
bahamianson 3 years ago
Then when all the money is leaked out or stolen, the government goes to the tax payers and says that they need to pay " their fair.share". Just because you lose money doesnt mean other people should pay. You need to be held accountable and go to jail if need be.
M0J0 3 years ago
sad situation but I hope they do not do as the FNM did try so hard they have to falsify things to get a judgement.
TalRussell 3 years ago
Youse see what see, de office UK Colony's premiership's Comrade Big Fella Clinty, was captured on news roll video, right up in official party were at Lynden Pindling Airport, welcoming home de Miss Universe's 10 spot finalist. Big Fella Clinty, 'em's even gave de Miss a welcoming home big hug a hug and everything else was he in mix like this and that, dignitaries does, ― Yes?
ThisIsOurs 3 years ago
"Furthermore, a review of contracts awarded per constituency found that the Killarney constituency—represented by former Prime Minister Dr Hubert Minnis—received most of the contracts."
dumbness... how did 33 men, including Pintard, sit quiet for 5 years in support of this??? Excluded are Sands, Symonette, Reece, Travis and Miller. Travis and Miller are on the edge Travis because he only spoke out about VAT and Vaughn because it now appears he was upset cuz he didn't get his share
Observer 3 years ago
The Board, you say? Those people were in it for the 'pay'; that is all. In the future, place people who are academically qualified and trained in specific pertinent disciplines instead of party fans. We have to better manage the resources of the Commonwealth of the Bahamas..
ThisIsOurs 3 years ago
AND start prosecuting board members for failing to execute their mandated oversight function. Then and only then will the dumb and lazy stop accepting appointments
TalRussell 3 years ago
Just youse wait once they through accounting de mere millions to switch focus on forensic overview at ministry and departments were charged responsibility for disbursing a Billion+ UK Colony's PopoulacsPurse's monies on all things education related and everything else like this and that, **including expenditures for Students On-Line Classroom's, ― Yes?
ThisIsOurs 3 years ago
And what other entities the party in power has "business" relationships with that benefits thdm financially for facilitating the business operation's unfettered access and freedom to operate under the when you in charge is your turn rules
TalRussell 3 years ago
As old saying goes, 'Don't just do something; stand there.' ― Yes?
ThisIsOurs 3 years ago
Yes
LastManStanding 3 years ago
We have had clown show governments for a good portion of the past 50 years. Instead of having the carnival in town, the circus needs to pay a visit. The government stooges will fit right in.
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