The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

AN AUDIT into The Bahamas’ Embassy in Brussels, Belgium found that over $600,000 of taxpayer’s money was spent on furniture purchases for the official residence.

The report was one of several audits tabled yesterday that looked into the financial operations of Ministry of Foreign Affairs’ embassies, consulate general offices and a permanent mission.

“During our audit, we noted furniture purchased for the official residence in the amount of 472, 427.80 EUR or $614,156.14,” Auditor General Terrance Bastian said in an audit conducted between November 1, 2019, and July 7, 2022.

 “The High Commission, London assisted the Bahamas Mission, Belgium with a 50 percent initial deposit of 257, 667.40 EUR or 334,967.62 USD. In addition, a second payment of 131,577.20 EUR (171,024.36 USD), totaling 389, 244.60 EUR ($506,017.98 USD).

 “Additionally, payments were made from the Mission Belgium account in the amounts of 72,873.20 EUR and 10,3100.00 EUR totaling 83,183.20 EUR or $94,735.16 USD and $13,403.00 USD totaling $108,138.16 USD.”

 Auditors said the funds obtained from the London office went towards furniture purchases that were approved by the Ministry of Foreign Affairs as the Brussels Mission did not have a bank account.

 Labour and Immigration Minister Keith Bell first raised alarm about the extravagant purchases in Parliament in June, accusing the Minnis administration of the “indiscriminate callous haemorrhage” of the public purse.

 At the time, he said more than $1m was spent on lavish items for an ambassador’s apartment in Europe, including middle chairs that cost nearly $40,000, a rug at $18,475, $14,000 for a lamp and $10,000 for a mahogany scroll among other costly purchases.

 In view of the findings, auditors recommended that the ministry establish policies for the purchasing of furnishings for all residents and embassies, consulate, etc, and noted that ambassadors should not solely be responsible for these functions but through consultations with the ministry.

 Meanwhile, at the Bahamas Consulate General‘s office in Atlanta, Georgia, auditors made several recommendations pertaining to its expenditure controls after reviewing payment transactions from the accounting records.

 The report highlighted an instance where a loan was approved by a senior officer without approval by the ministry and recommended that cash payments be minimised to strengthen disbursement internal control.

“We observed copies of two loan agreements from the operational account in the amount of $4,000 and $7,000 respectively. The loans were approved by the senior officer without approval from the Ministry of Foreign Affairs. The loan of $4,000 was paid off; however, the amount of $7,000 to be repaid beginning January 31, 2019,” the audit reads

“No repayment amount was indicated in the agreement. We noted evidence of six repayments to the account totaling $5,537.59 as a result and we were not made sure if the remaining balance of $1,462.41 was repaid to the account.”

The audit also recommended that the Atlanta consulate office provide the authority for the increase in transportation allowance between June 2014 to November 2021.

It also noted that if evidence cannot be provided, the effected officers should be forced to reimburse the government.

“During our account’s payments review, we noted an amount of $11,050 paid for four local staff for retroactive transportation allowance during the period of June 2014 to September 2018. This was done to increase the transpiration allowance from $200 to $250 per month,” the report added.

“We noted a minute that referenced the Bahamas Human Resources Manual Article 16.3 of benefits/ provisions, circular No 10 dated August 14, 2014 justifying the increase; however, a review of the foreign service allowances indicated that the allowance amount of ($200.00) remain unchanged.”

“The increase was applied to the salaries of local staff from October 2018 to November 2021.The Ministry of Foreign Affairs did not approve the increase.”

The report also noted that a senior officer who was entitled to a clothing allowance of $5,520 biannually, received $11,040.00 from a four-year payment from the operation account.

“The disbursement was affected on April 12, 2019. The officer was appointed in September 2017 which would have allowed for a two-year payment only. We recommend that the authorisation document from the Ministry of Foreign Affairs be placed on the file. Clothing allowance should not be paid from the operational account.”

Auditors also observed that the interim accounting officer lacked the necessary training in government accounting procedures and advised that training be given to the officer.

The report also recommended that the consulate office seek assistance from the ministry in recovering outstanding receivables.

“The Atlanta consulate office incurred expenses on behalf of the ministries. Departments and Bahamians in distress. We could not determine amounts repaid or owed. The consulate office does not maintain an accounts receivable ledger.”

And at the Bahamas Permanent Mission in Geneva, auditors recommended adherence to Cabinet orders at it relates to independence celebrations.

“A review of the financial records for the Independence celebrations of the past three years 2019, 2020 and 2021; revealed increases in spending of CHF 1,199.69; however due to the COVID-19 no funds were over spent in 202 and in 2021…,” the auditor said.

“The mission received an amount of 2,5000.00 USD to host the 48th Bahamas independence celebration; however, no celebrations were held. The funds remained on the account…”

According to the report, the Cabinet directive states that “detailed reports be provided upon completion of the Independence celebrations and not to surpass the 50 per cent allocation.”